~ 2481 min

Bloomberg Livestream - 2022-08-15 00:00:00

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The power pivot. This is the payroll pushback. Hey 2023 CARDINAL wrong. That is a great question. It's a great question. Hey Great question. Television. Welcome to Deborah Australia PERSON Hey Major market opens Korea GPE way on holidays but we're watching China GPE very closely of course we get key economic data highly as we Liquidity Take activity indicators very very closely later on today DATE let's get you look at Could open bell. Yeah guys we also had that week DATE of financing data as well from China GPE so another headwind facing investors across the region particularly in China GPE of course we're just a few seconds TIME From the open of Japan GPE and Australia GPE . Career is close today DATE for a public holiday treasuries they'll be the other focus at Conflicted here by those mixed messages that we're getting from US GPE economic data is the is the peak of inflation over can the Less aggressive or more aggressive. We're seeing bit of mixed moves there as well. We know that moving yields is also weighing in on the yen here Recap those numbers with the Japan GPE GDP figures in just That is the headline here today DATE for us and we're seeing Japanese NORP stocks. Just moving a little bit higher at the upside here. Turning now to the open for Australia GPE as I said Korea GPE is closed today DATE so we're seeing ASX 200 PRODUCT . Coming online unchanged right now of course In Australia GPE we've got blue scope beach energy they're just some of the big names today DATE we're just getting an eye as well what we're seeing the years DATE as well for the Aussie and then that the Aussie GPE dollar meanwhile just above that ยข71 level it is of course being closely watched it could move as we do see the reaction Activity day to coming through as well as I said that financing numbers as well sharing of course we are looking at those Japanese NORP economic numbers with the preliminary reception quarter CARDINAL GDP number expanding but still falling short of economist expectations we're talking about growth of two CARDINAL . Two% on an annualized basis when he expectation Of two CARDINAL . Six% growth let's bring in chief Adria ORG economics correspondent and the current and so yes we are talking about growth but still missing expectations what do you make of these numbers I think it kinda reinforces the doveish outlook that say the bank of Japan GPE takes forward Japan GPE 's economy Sherry PERSON we look through the numbers it does look like the consumption side of things still a little bit softer than expected there seems to have been an a drive from inventory as well and of Preaching for a long time that they're not seeing any kind of animal spirits in the Japanese NORP economy they point to ongoing in a week DATE wage growth and of course they say that inflation is is so much transitary due to the fact that it's multi energy Increasing restrictions around travel to Japan GPE that probably would give consumption a booth so Say the overall number is a soft GDP number for Japan GPE and does speak to Theresa May to be a J for example has been fairly underdog a child unlike it's global peers And we've got the domestic activity indicators out of China GPE later on as well but really the aggregate lending numbers were pretty ugly. There's lots Zones that we are seeing all of the signs of a cloud
Activity indicators out of China GPE later on as well but the really the aggregate lending numbers were pretty ugly there's lots Zones that we are seeing all of the signs of a classic liquidity trap. Well there are concerns in China GPE at the moment that a lot of what's happening eh or at least a lot of the tonic and the economy needs isn't more liquidity isn't more money the appetite for boring isn't there because of what's Me on the ground and that's because of the big structural shift in the real estate market given the crackdown that the government has pushed through over the last few years DATE and of course now you have your underground ongoing destruction linked to the COVID restrictions or seeing the latest coming out of Hinan it just speaks to the idea that consumers aren't really willing to eh you know borrow and spend as they should and that's been Fact that the corporate level as well. So we will have some money mark operations. The application is at the central bank. Meet eh take some money out of out of the financial system. It's certainly won't be a tipping extra money into it. That's not expected and answer as I That's because the problem in China GPE 's economy isn't a shortage of liquidity in the in the money markets. It's a fact that those parts are really economy. It does need money. Aren't getting the funds that they need and that's the that's the chess center that the government's Crack ORG at the moment. Continue rising earnings set to slow the sharp rally across market under performers Run out of steam. Manager joins us great to have you always how difficult is it navigating the ambiguity not just of markets but where the macro Me WORK_OF_ART is really headed. It's incredibly difficult at this point because not many of us have ever seen high inflation rampant inflation and then this sharp increase in interest rate expectation. At the same time the economy versus the economy is still recovering from the Pandemic and the lockdown and things so there yeah there's a lot of moving parts at this point and and then the share mark is trying to deal with it as share market always look forward to a month What are your favorite trades right now then Yeah look I think what's interesting is that if we look at where the share price share marker is the Australian NORP markets that forward 18 CARDINAL times earnings which is pretty much on you know on average in terms of the earn Multiple. And so the market is you know reasonably priced and then you know over the next 12 month DATE which just talks about all these uncertainties but what we do know is that corporate earnings growth will slow and then we know the interest rate will go up and we don't know how far but it will go up All that combined it does mean that you know overall index level we only have marginal gains in the next 12 months DATE . What was really interesting hearing the US GPE June Bay is that we are now seeing already the busiest month DATE in a few months DATE already when it comes to M and A's $ 13 MONEY . 4 billion CARDINAL of tech Companies having a hard time really finding growth could we see more of this across the world as well. That's a really good question because as you mentioned that we're corporates are sitting on very strong balance sheets so as the gross slowdown that's a natural area to allocate and aside from the corporates and we do have the you know the private equities and other Alissa PERSON vehicles that are sitting on a lot of cash and waiting to be deployed if anything on the Australian NORP market which is so another MNA ORG bids for small tech company and then in the last few months DATE we've seen quite a lot Of the share market in the next few months DATE just as the market sort of still revaluing some of those sectors that's been sold off a bit to aggressive in the last in the last 6 months DATE . In June DATE , I mean, I keep hearing the bear Rallies look very similar to the start of new bull market rally so how do you differentiate where we are in in the process and what are some of the signs that you're watching out for? Look honestly I don't believe this is a bear market rally we do think the market on the overall index level looks Valued ORG . However, even though we're talking about the corporate growth slowing and the like and they are still growing. And some of the growth if we look at the Australia GPE for example. Some of the We've got you know and then we've got the the the the inflation potentially pick So, all of that is a positive note. So, for me, is that I think the share market would do okay? It's just the return expectations.
And then we've got the the the the inflation potentially picking up. So, all of that is a positive note. So, for me, is that I think the share market would do okay? It's just Turn expectations perhaps somewhere in the low single digit to meet single to a missing Instead of the you know sort of sort of it's about to crater and we just talked about the M and A all of these were underpin the support for the share market How do you play these interest rate differentials across the world? Look at the interest rate they've differential will will continue to narrow over time because Australia GPE perhaps is just on the slower path compared to the US GPE and we do have to tighten quite quite quickly I To really suppress some of the inflation that's coming through whereas US GPE perhaps the expectations there but net net I think you know all of us will see interest rate increase and then Over the next few readings are will start to top out but we have to wait to see when you take a look at structural growth Use which stocks are you like? I know that you're still pretty bullish on healthcare. Hm. I'll absolutely. I think when we talk about all these uncertain Out there for the share market and for a share market that's sort of more neutral valued healthcare is stand out place because their growth is not and the pins by you know economic activity and the like and they have their structural gross levers and it's a fantastic as part of the And if anything a lot of them have been sold off during that whole growth sell off period. So they provide very good underpinning. At the same time are some of the other sort of tech leaders. It's time to look at them as well. Because they you know they do provide that structural growth because you know if we look forward next 5 years DATE the girls will be slow And so you do want those companies to grow your portfolio. Sickly causing looking a little bit tough but we do think China GPE perhaps at some point when it comes out of lockdown. It will it will the stimulus will eventually to to feel some of the commodity areas as well. Paul's question of the week DATE is recession To rain inflation. Look I don't think that nurses recession is necessary to do so simply because some of the commodity areas and For the supply chain is already coming through. We just need a period of absorbing. And also allowing some of those mechanism to work through work is way through. And you know in a way it's perhaps a good that China GPE is slowing coming back into its full capacity for its economy so that Are supply chain pressure is not going not as bad as it could be. So yeah and that and that we think it's potentially we could maneuver that but we do have to wait and see what the inflation readings will be Rebecca portfolio manager June See you again back in our Sydney GPE studio there with Heidi PERSON . For a check of the big movers this morning TIME bell. Oh yeah Sherry very much focused on Australia GPE today DATE as well actually here as well because we do have those big earnings coming out from some of the Aussie NORP companies so blue scope still is one CARDINAL of them kick Here it is just jumping a little bit higher at the start of trade here they're 4 year DATE underlying profit it did beat Economic headwinds facing many companies around the world with the board also approving an extension of it share buyback program so more than half CARDINAL a one 1 billion dollars MONEY of shares can Over the next 12 months DATE in terms of the other movies to the outside JP high five CARDINAL Estimates in terms of the decliner so we are still seeing moves the downside Invasion of Ukraine FAC and meanwhile Bendigo and Adelaide Bank ORG also moving to the down side hiding Yeah let's get there with the first one headlines money. Ladies thank you. To exit from US GPE exchanges five CARDINAL of China GPE 's largest state owned firms announced their intention to do this on
Sign up back in China GPE life insurance are among a group of Chinese NORP giants set to exit from US GPE exchanges five CARDINAL of China GPE 's largest state owned firms announced their intention to do list on Friday DATE that says the start over audits continues about 200 CARDINAL Chinese NORP firms are facing possible de listing in the US GPE as soon as Access PRODUCT to American NORP auditors. Chinese NORP officials have signaled a thousands CARDINAL of tourists trapped in hotels on High Naan could soon return home. Frustration over COVID lockdowns on the resort island sparked protests over the weekend DATE . Authorities say commercial flights for domestic passengers out of Hotels ORG within the last 7 days DATE . The chair of the US House Intelligence Committee ORG Adam Schiff PERSON says he hasn't seen any evidence that materials the FBI ORG seized from Donald Trump's PERSON home were properly declassified Trump ORG said Friday DATE that everything taken was decarcified or covered by execut And attorney client privilege. Us capital ORG police Saman PERSON crashes car into a barricade and fired a gun into the air several times before fatally shooting himself. The 29 year old DATE man may have said fire to his own car and was being approached by officers when he shot himself. It's still not clear why he chose to drive to the capital area according to the police it doesn't appear the man was targeting any members of congress ORG . Water levels are the key way point on the Ryan River LOC are expected to steady at an extremely low level this week DATE . He has a climate crisis adds to your energy crunch When the water level is about 40 cm QUANTITY or below and it's currently at about 35 cm QUANTITY the rain is western Europe LOC 's most important river for transporting fuel and other goods Global news 24 hours TIME a day on air and all boomber quick take power by more than 2700 CARDINAL journalists an hour TIME and more than 120 CARDINAL countries I'm finally Quinn PERSON this is Bloomberg Heidi PERSON . Joining us to discuss China GPE 's economy. Policy outlook ahead of a raft of connectivity dated you later Visiting Taiwan GPE risking more anger from Beijing GPE . We get more on what this means for US GPE , China GPE , Next ORG . While Tesla ORG 's in the like make for good headlines the reality is that even if every car on the roads today DATE when electric it wouldn't be enough to curb global emissions to avoid catastrophic climate change. Greenhouse gas emissions from transportation account for about 29% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? Instead of burning oil and gas to give us the energy and electricity we need we wanna do 100% PERCENT clean energy Vehicle is all electric with no fossil fuels. We wanna do that with our buildings and if we can do it in one CARDINAL building, we can do it in all buildings and if we do it in all
Terminal speed. Hey portal Gradually improving activity. However, the recovery continues to be tested by fresh COVID outbreaks and ongoing property sector pain for preview. Let's bring in our retrieve Correspondence In Hong Kong GPE see what are we expecting in these numbers? Yeah, a lot of numbers are coming out later this morning TIME . And again, we were likely to see that momentum of the recovery continued at least the headline numbers will show that factory output did gain a little bit of speed after of course what was pent up demand in June DATE following of course the relaxation of the lockdowns in Shanghai Elsewhere ORG but there are of course lots of pressures in the market right now in the Chinese NORP economy with fresh outbreaks in high non with COVID as well as the ongoing property sector. So, we really have to dig deeper The data that we're getting today and I believe me we are getting a complete deluge of July DATE data from factory output to retail sales to fix that urban investment to jobless rate to properties existing property sales So much is coming for market participants to look at let's start with industrial production factory output did have a bit of a recovery following that law of course with the Shanghai GPE lockdown and there was a lot of pent up demand as well Of course for exporters to get their products out and we had a buzz a boost I should say from export demand but we're already talking to some export managers I add a number of different manufacturers and we're seeing perhaps you know export Survey by Bloomberg PERSON recently indicates that factory orders are shrinking and that is an ominous sign for global demand. In fact, just we get really granular and here at Bloom Sometimes but it gives a good indication of right now orders for items such as buttons zippers a sewing thread down about 30% PERCENT in July DATE and August DATE a lot of people who are buying from abroad were buying heavily bulk buying in 2021 DATE to kind of get ahead of these supply chain constraints and the Delays. So now, they're starting to work off some of those inventories and that pent up demand that we saw boost in factory output in June DATE and we're gonna see it a little bit in July DATE but going forward, there could be some pain coming down the road. Retail sales is also out A key indicator of course of domestic demand so if they're not gonna be selling as much overseas if that weakness and exports will they be able to sell it domestically well retail sales might have some troubling signs as well the number might be alright about five CARDINAL Doesn't contribute a lot but oh. Five% to GDP as well as retail sales on a national wide basis but also could indicate some weakness or risk a version to travel right now and that would hurt services And overall spending in China GPE . So so much we're looking for coming down the pike this morning TIME . Look. Looking for the MLF ORG as well. What are we expecting? Yeah, when you look at the MLF ORG , you have to also look at the bank loans, right? So, the banks right now are flushed with liquidity. The problem is they're not necessarily seeing a lot of loan demand because of the property sector was and just the All confidence in the trajectory of the Chinese NORP economy. So,
They're not necessarily seeing a lot of loan demand because of the property sector was and just the overall confidence in the trajectory of the Chinese NORP economy. So, new loans as well as aggregate financing really dropped off in numbers we got Friday DATE while M two CARDINAL the broadest measure of money supply was considerably higher so banks have lots of money so what we're expecting with the MLF ORG later today DATE at 920 CARDINAL Beijing GPE time we're expecting eight CARDINAL of 12 CARDINAL economist expecting the PBOC to withdraw Cash from the system through the MLF ORG for the first ORDINAL time this year DATE . So, we have about what 600 1 billion Yuan MONEY maturing this month DATE in MLF ORG . We're the median estimate is for MLF ORG of 400 1 billion MONEY you on injection and they expect the rate to be the kept unchanged at 285% PERCENT . Essentially with that loan data that we got and I wanna give you before I wrap up here Bloomberg Intelligence take on this the surprising sharp retreat in China GPE 's credit July DATE should put policy makers on alert even taking into account usual July DATE law of the We're extremely weak. So, lots to watch at 920 CARDINAL . We get the MLF ORG and the PBOC at 10 CARDINAL . We get that data dump. There for market watches 225 CARDINAL in Japan GPE on track to raises year DATE to date loss of course it's been a pretty challenging year for development market But we have had a currency effect really helping Japanese NORP equities that we can also continue stimulus by a very resolute bank of Japan GPE both the topics and the have outperformed their peers and in fact they closed within one CARDINAL percentage point of positive territory Of last Friday DATE which was by the way of fourth ORDINAL straight wicked games for Asian NORP markets and US GPE markets as well but we continue to watch those games continuing to the Monday DATE session despite that second quarter DATE GDP being softer than expected What US GPE congressional delegation are led by senator Ed Markey PERSON is on a 2 day DATE visit to Taiwan GPE . Is this in 2 weeks DATE after a tour of the island by US GPE House ORG Speaker Nancy Pelosi PERSON let's bring both type of bureauships Alice ORG for more. Really the reverberations from the Pelosi visit. It does and the reason we're talking about this is of course because as you mentioned it just 10 days ago DATE US GPE House ORG Speaker Nancy Pelosi PERSON made a visit to Taiwan GPE that triggered a whole range of angry reactions from Beijing GPE some economic Against Taiwan GPE and Taiwanese NORP companies And days DATE of military maneuvers in the Taiwan GPE straight including the shooting of a missile directly over the the island of of Taiwan GPE but it is important to remember that these types of To happen all the time if you look at the numbers in a typical year DATE more than 10 CARDINAL US GPE lawmakers do visit Taiwan GPE in multiple trips but of course coming just days after Nancy Pelosi PERSON was here you know this is the first ORDINAL visit since then Yeah, this is obviously getting a whole lot more attention. And also more attention on Chinese NORP actions around Taiwan GPE when it comes to sending war planes and warships. This is heightened activity. Spell out the new normal around the island now. That does appear to be the case yo obviously after Nancy Pelosi's PERSON visit to Taiwan GPE we were looking for at the you know long term ramifications for that and one of those does appear to be that China GPE is taking a much Forward stance, you know, they are sending many more aircraft Round Taiwan LOC around Taiwan GPE 's air space across the median line of the Taiwan GPE straight which for decades DATE was this kind of informal barrier between the two CARDINAL sides but over the past 10 days DATE we have seen you know much greater numbers PLA ORG planes, in and around Taiwan GPE , or around Taiwan GPE , we do not in Taiwan GPE . And so that does seem to be, you know, one of the key things, one of the key changes that Beijing GPE has made is to, to signalist displeasure is to really up the numbers there. Something else or a Bloomberg GPE type bureau chief. Find and you can get a round up of the source and you need to know to get your day going and today DATE 's edition of Daybreak WORK_OF_ART , Bloombrook
Something else or a Bloomberg GPE type bureaucracy. And you can get a round up of the stores and you need to know to get your day going and today DATE 's edition of Daybreak Bloomberg PERSON subscribers go to David go on your terminals also available on mobile in the Bloomberg GPE anymore app you can customize your settings so you only get the news on the industry and the assets that you care The Indian NORP city of Jamnagar GPE is a money making machine for Asia LOC 's richest man Mukesh Ambani PERSON . His company reliance has the world's biggest oil refinery complex here in the city. Jamnagar ORG is also where Ambani PERSON is making his newest bet. A 10 1 billion dollars MONEY investment in green energy. His ambition is closely aligned with the Indian NORP government's plan to reach net oh emissions by 2070 DATE . But Barney PERSON is not alone. India GPE 's second ORDINAL richest man galta madani PERSON has committed 20 1 billion dollars MONEY of investment over the next decade DATE . But India GPE 's massive dependencies on fossil fuels have some environmental applicants questioning the realism answerity of those green ambitions and those of its two CARDINAL biggest billionaires. Go to the market that over the past few weeks DATE has made it clear it wants to go higher it got a little spooked by the idea that due a political temperature rising Here's a quick check of the latest business flash headlines Wells Fargo ORG is planning to shrink its vast mortgage empire which once turned out one CARDINAL of every three CARDINAL US GPE home loans sources say the banks leadership may begin that retreat by reviewing ties to Last year DATE the strategy shift follows changes in the executive ranks and years DATE of costly regulatories for me One 1 billion US dollars MONEY beating the average on this Over the next 12 months DATE . Yo Mark Vasella PERSON on This is Bloomberg PERSON . I've always been a person who's just been attracted to hair I like to see and think in theaters.
I've always been a person who's just been attracted to hair. I like to see and think and theorize how I can manifest these visions that I have for braiding and how I can take something that Mac Like it's a line drawing in my mind and apply that to someone's scalp We are the only culture that has here that grows out of our head the way that it does Anyone from the African NORP diaspora is born with this amazingly I want black people to love themselves for how they naturally appear and also to appreciate the cultural practices such as writing that our ancestors have For centuries DATE . Welcome to the world of decentralized finance Bloomberg PERSON crypto Tuesdays DATE . I think that it's hard to put your head around any narrative. Let's just be honest. We've had sort of a shift in are we in some sort of cyclation, fears, moment. People are talking about that all day DATE yesterday DATE . The first ORDINAL word headlines. Japan GPE 's portal GDP was revised to an A US GPE congressional delegation led by Senator Ed Markey PERSON and Angelin Taiwan GPE on Sunday DATE for a 2 day visit According to the American Institute ORG in Taiwan GPE discussions including global supply chains and climate change. The trip risks keeping tensions with China GPE high after house speaker Nancy Pelo PERSON Recent visit to the region Salmon Rashi PERSON is starting to recover 2 days DATE after being stabbed at a lecture in New York GPE The AP ORG is closures his agent saying the author is now on the mend and on the road to recovery rush she said to have been removed from event later Sunday TIME and is able to talk and joke the author of the satanic Multiple times shortly after taking the stage Billionaire PERSON investor Rakesh Equity investing and was among the most influential market voices in the nation joined in Wallace PERSON started buying shares with a loan of $ 10100 MONEY In 1985 DATE and along the way invested in some of India GPE 's most prominent names including its biggest jeweler, Titan GPE , and Airline PERSON startup at Casa Air ORG . Global news 24 hours TIME a day on air and I'll know where it could take power than more than 2700 CARDINAL journalists and more than 120 CARDINAL countries. I'm Vonnie Quinn PERSON . This is Bloomberg PERSON . Heidi PERSON . Alright, let's get you straight to the market. Spell ORG , what are you watching? Thanks Heidi PERSON I was just picking up on that red head we had crossing at the terminal just a few minutes ago TIME essentially Japanese NORP stocks now looking to erase their year to date DATE a loss of so let's just take a look where we're sitting Japanese NORP dogs that's largely been driven by the BOJ ORG sticking with its easy policy settings in that yield gap has been a supportive factor will really leading to yen weakness Which in turn has boosted or help to boost equities particularly the exporting names is also consumer confidence that's starting to pick up in the country some solid economic indicators as well we just had that GDP data out earlier a good earnings season but let's change on now to take a look at the broader market picture as well because we are seeing Japanese NORP stocks as I said trading high today DATE As well and New Zealand GPE in the green career of course close today DATE for a public holiday US GPE futures looking a little bit weaker but globally we have seen stocks now rising to a 3 month DATE high the other factor we're watching though is we get underway for trading
Of them coming out together five CARDINAL as you mentioned and now all eyes are turning to who else am I coming to announce the the listing plans and other than the five CARDINAL SOS ORG You mentioned there are still a few listed in New York GPE such as Chinese Eastern China Eastern Airlines ORG and China Southern Airlines ORG and one CARDINAL in power and all these potentially could also just announce very soon but in terms of share reactions we See much on Friday DATE in New York GPE and people are actually expecting the shares to potentially a bounce a little bit in Hong Kong GPE just because New York GPE trading has Companies and there could also be patriotic buying in China GPE for those Nancy PERSON I would like to see more to come particularly as there are voices within Congress ORG calling to move that deadline to 2023 CARDINAL . Yeah I think what the deal listing plans signal to us to investors is that it is really unlikely that the two CARDINAL nations would reach some kind of significant agreement to buy that deadline so the idea is more than 200 CARDINAL Companies listening US GPE may gradually announce their plans to to do list all eyes will also be on the big tech giants with VIE ORG structures so that would include Aliba And ORG by do. Yeah I think that's just gonna be the sort of overhand for those companies listed in in New York GPE right now. Our Asia LOC 's dogs managing editorian team to the art let's take a look at oil at the moment as we get this ambiguity when it comes to And a man going into what is of course going to be a pretty complicated supply situation in the next few months DATE . We're seeing breakthrough trading off by about a quarter CARDINAL of one% ORG and New York GPE crude also a little bit softer as well. Prospect of increasing Iranian NORP supply. Traded really trying to weigh a mix of bearish and bullish headlines here. That possibility of a rain Bloomberg Sukin PERSON and joins us now for more so Sue what are the the dynamics that we're seeing at play here? It's gonna be choppy trading go We are extending the losses we saw Friday DATE where West Texas LOC didn't mean it was down about two CARDINAL and They're bullish positions on New York GPE tweeted oil to the lowest into years DATE and Nuclear deal. Meanwhile Commodities across the board Should fall further and there's that added benefit for the Biden PERSON administration here in the US GPE . It's a political advantage to have lower gas prices because that has been a key concern of the House ORG . Going forward what we're gonna see with the price direction but the bedding according to a lot of the trading data and options activities that short term we could take another like lower and yet it was only a couple months ago DATE when we had oil above $100 MONEY a barrel so perhaps not surprising why Sally PERSON did so well. Yeah, just Annie. Take a look at a 48 CARDINAL . 4 billion CARDINAL in profit for the second ORDINAL Capacity
The company CEO also expects Saudi Arabia GPE state controlled company things Perhaps in the rear view mirror Hey portal Just saw we're pulling back significantly from those levels. Key number with the latest on the energy spacing of course Chinese NORP demand a key factor when it comes to oil prices the country set to report monthly DATE activity Discuss PERSON the outlook next. Twice as much as possible Can it sustain it's normal at a time when everybody else is facing a very different reality. Let's get the latest now with Bloomberg PERSON 's managing editor for Asia Google Business Brian ORG so Emma PERSON what's the situation when it comes to Sonia GPE and China GPE 's COVID outbreaks more broadly? Yeah well it looks as though hi Nan you know often referred to as China GPE 's Hawaii GPE down there in the south a very popular tourist and holiday maker location is turning into a little bit of a mini Shanghai GPE we've seen cases over a 1000 CARDINAL new cases a day there Hotels ORG across the board and cities there locked down they are trying to sort of ease the situation somewhat we saw protests from people in hotels over the weekend DATE angry that they were being still charged for their room and board and some people also But they are starting to try and move people out. Now, the only For 7 days DATE in their building or hotel and once they get back to wherever they're from they do have to do 3 days DATE health monitoring Emma PERSON we're also seeing pretty high number of cases in Hong Kong GPE a 4 month DATE high recently where we at now Yeah I mean we're over 4000 CARDINAL cases a day in Hong Kong GPE but a very different starts compared to mainland China GPE even though Hong Kong GPE
Very different starts compared to mainland China GPE even though Hong Kong GPE you know is extensively still targeting dynamic oh one of the names that Beijing GPE gives for for what it's doing with COVID right now they're definitely A higher level of comfort with AA low level of cases in this case in Hong Kong GPE and still sort of trying to to seal off the border somewhat with the the new East Quarantine ORG rules Hospitalization rate and of course deaths which hasn't been picking up but not to the Where it's pressuring hospitals quite just yet. Global business ML Brian PERSON with the latest Cases across China GPE let's bring in our next guest who's expecting a solid recovery Joining us is Good to have you with us. So, first ORDINAL of all, just get us started with your expectations of today DATE 's activity numbers out of China GPE . Yeah so today we have the July DATE activity number particular domestic funds we already have the three CARDINAL reports coming giving out last week DATE which was still well pretty soft pretty solid With the key issue to watch out how about the domestic event particularly for English LANGUAGE perspective that we expecting three CARDINAL . Three% GPE still obviously roughly the same range and translating months they were looking at zip on 6 months% or DATE months DATE that's quite solid gross Particular ORG putting in the current global perspective we are concerning about the deceleration in the US GPE and your area so from China GPE perspective on that China GPE is providing a lifting a lift for the global economic growth in the third quarter DATE and a mainly two CARDINAL reasons one is that Trying to stick economy open is still not completed yet so still some momentum is going on and second ORDINAL more importantly that the policy impact announcing the second quarter DATE as many policy impact will continue to carry through in the current quarter DATE . I've got the the question is the house sustainable this moment that yes Third quarter DATE constructive. Continue to see that physical support that monetary support as well as you mentioned in China GPE but there are now some renewed concerns about our potential liquidity trap given that Has slowed so much in the month of July DATE while you have so much excess liquidity is that a concern to you at all? Yes I think if we look at the the credit report last Friday DATE You can see that the Central Bank's ORG liquidity policy has been released in the last several months DATE . However, if you look at the long components and also the disappointing headline number last Friday DATE is still pawning at the major issue is at domestic event living on the west side. I've got that's related to the uncertainty Before they see a clear exist strategy and more certainty environment it's a very difficult time to go out to increase the new investment and for household to increase a consumption so I think this is the the dealer we're facing what has been driving the econ Supported by the special local governments we based on our estimate that the third quarter DATE the fund deployments for from a special local Bond ORG . Two CARDINAL . One CARDINAL A big improvement and the weather area that we see a stronger thing for strong investment grows and to add on that actually we we are construct on third ORDINAL that it doesn't mean in all sectors economy will perform very strong as you were going to see continuous diverging performance across industries those Policy tailing sectors like infrastructure manufacturing new energy cars these actually will perform much more strongly however at the same time we see that the weakness in housing market for example that will continue and probably even widening for a quarter I've been as a result of the excess liquidity world.
Housing market for example that will continue and probably even wider in for a quarter DATE . Have been as a result of the excess liquidity we're also seeing bang barring rates at that cost falling a full one% ORG compared to five CARDINAL So go take a look at this chart which really does show that 7 day DATE average of overnight TIME repo rate falling does this also tell you something about the productivity of landing and debt in China GPE now at this point in economic development do we To see more physical than to be able to make up for what what this is clearly not doing. Yes so if you look at the compare the market rate right 70 CARDINAL report rate weathers policy rate policy hasn't changed since January DATE but the market rate the report rate as a countdown and now it's a significant below the policy rate and so that tells two CARDINAL things one is that the on the Intention ORG side the PBOC does actually provide ample liquidity in the system at the busy the banks actually listen to their the the central bank instruction however that in terms of the the relationship between the credit supply but it's credit demand now the weakness is mainly the credit demand as I said that you if the Was much higher much stronger Strategy Hey sustainable how quickly that the policy support was spew over from this policy To a brother economic activity and I think for that is a big question and we have good reason to be more concerned in the fourth quarter and fourth quarter DATE remember we're facing several challenges one is that the the policy particular the fiscal policy support will fit away very quickly and second ORDINAL is that global environment Pig will become more challenging we're talking about the your area likely entering the session and also USA GPE economy slowly so the global demand that you're supporting Chan Sport PERSON probably also weakened and at that time that she if the housing market continue to be very weak and without additional policy stimulus China GPE 's close likely Lose PERSON momentum very quickly in the fourth quarter DATE Have you achieved channel economist at JP Morgan ORG always great to chat with you and you can of course always tune in to Bloomberg Radio ORG as well here more from the days big news makers and get in depth From the daybreak team. Radio. Com. This is Bloomberg PERSON . This month DATE as the world watches inflation rise employment rebound and fiscal policies react Economic Discuss the economic issues and solutions that keep the world's money moving
That is a great question. Hey Great question. Receiving a 447 1 million dollars MONEY With earlier this week DATE Benefits NORP by 15% PERCENT last quarter DATE the plans come is Assets and stay on the sidelines are mid market volatility. According to a regular's investment firm bolstered it Investment firm managed more than 28 CARDINAL 1 billion dollars as at the start of 2022 DATE . Course not list of which here in Australia GPE but also in China GPE as well and we've seen the impact on the market economy when it comes to COVID-19 COVID oh strategy and maintaining that strategy of the lockdowns and mass testing that's expected to feed through the to the downside for Chinese NORP earning Take a look at this for China GPE we're expecting 12% PERCENT downside when it comes to this earning season in fact for broader Asia LOC stocks across the Poise for the worst results since 2020 DATE . Yeah that's surprising given that of course we have had those downgrades and earnings per share four CARDINAL Asia Pacific LOC members falling 16% PERCENT last quarter DATE from a year earlier DATE the cheapest decline in a quarters DATE and you mentioned Chinese NORP earnings yeah we could see that drop of Percent ORG in the aggregate profit given of course the MSCI China GPE earnings for sure at SMS we have seen as you mentioned the COVID Revenue but still of course coming from a very low base so we're very much watching what's happening with ยข10 this week DATE as well. Enter into this crucial earning season Lee Odo PERSON set to report its quarter Hey Rushing to secure LNG ORG supply for winter DATE worsening a global shortage and driving prices higher Heidi Yeah PERSON energy continuing to be a major theme this week DATE we'll cover up next El Warren ORG capital is The sector so we'll be hearing why but their position Coverage PRODUCT continues. We're looking ahead to the start of trading in Hong Kong GPE , Shanghai GPE , and Shinjin GPE . Open is next. This is Bloomberg PERSON .
The 700th ORDINAL anniversary of Dante Alegary's PERSON death has triggered the work of many institutions and offered a very rich schedule of events Hey and said to crochet we present one CARDINAL of these projects that suffered a difficult start because COVID-19 has stopped the project that was shared by the opera desanticoche by the franciscan community from Florence Municipality GPE and the fun for religious building of the internal minister. Today Feliz Limosani's PERSON project is finally enjoyable In the positive chapel the Marvel ORG 's architecture by Felipa Brunoleschi PERSON . Most important images from the divine comedy created by the French NORP illustrator Gustoph Dore PERSON Through these images we can live the violent emotions of hell The weight of purgatory and the sublime joy of paradise. The digital humanity is also normal cause the digital humanities are a cultural occasion to exploit. Summing up it's about merging humanistic disciplines with new technologies. I find this to be an innovating and modern tool to update culture. Cultural heritage becomes something to hand over to the new generations and not to be put aside so it's about using technology pixels and binary code with a human and humanizing content. Is it possible the industries in an arms race that will Lead to spending itself into an over I mean that has happened before. We we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life, Emily? Is it becoming more digital? Well, I'm trying to prevent that but yes. I think it's happening. And COVID ORG has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . Industry overall Estimator are one 1 trillion dollars MONEY , a doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there's not gonna be some blitz and turns on the way, and the majority of that is driven by Technology can satisfy that needle. It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reversed It's 9 AM TIME here in the city up in Beijing GPE and also in Shanghai GPE welcome to Bloomberg Markets ORG trying to open I'm David and Glass PERSON with Yvonne Man PERSON . Our top stories this morning TIME echoes across most of Asia LOC game but Chinese NORP stocks look set to struggle after that week July DATE credit numbers that we got investors also waiting just a few minutes TIME on chance econ Activity as well as liquidity operations by the PBOC.
July DATE credit numbers that we got investors also waiting just a few minutes TIME on chance economic activity as well as liquidity operations by the PBOC and a US GPE congressional delegations visited Taiwan GPE right after house figure Nancy Pelosi PERSON could further anger Beijing GPE . Alright, happy Monday DATE to you. We have a Tap here today DATE Desi GPE mentioned that data dump happening in a top of the hour TIME the next hour TIME we have MLF ORG in 20 minutes TIME and that July DATE credit data collapsing really not really boating well so far this Monday DATE morning TIME . Yeah they're on top of all of that new home prices are also coming out right so there's lots to get through and and certainly while you they just one bit the other set's gonna come out not to mention of course also some key data coming out out of the region today DATE in Japan GPE GDP and just looking ahead to the week fed minutes you have two CARDINAL central back decisions in the region markets looking like this as we approach the first ORDINAL sessions of the Struggle if you will I mean we're coming off what two decent days on shore volumes have been picking up on the mail and in fact I think we are approaching that 50 day DATE moving average Under Shanghai GPE composite. Thank you so much for that. There we go bottom of your screens. Market's looking like this across the region, Worth noting the nickname not the topics basically flat now year to date with these games were seen today DATE we're looking at some great hikes out of New Zealand GPE in the Philippines GPE this week DATE we mentioned that FX ORG and Bonds ORG doing this I think we're looking at your twos and then your tens you do the math and you get a sense of really how deep that inversion is between those two CARDINAL things dollar China GPE 's doing this 673 74 CARDINAL . Last I checked the boards please. If we had to thank you so much. There we go. Dollar Swissy. That's a key one. Big big drop last week DATE . I think we just breached AA key. Support love. I think it's Or 200 day DATE . We'll get to that in just a moment there. Bitcoin, we kissed 25 1000 CARDINAL , very briefly, last night TIME , we were a little bit below that, there we go, and look at oil prices, continuing to slide, and certainly the key did out of China GPE today DATE will, at least a lot of way shape the narrative, their in terms of their demand for commodities, and of course We'll talk about that later. Busy day as we mentioned here As far as the ecodair front in China GPE , we are counting down of course too. A ton of things, industrial production, retail sales, fixed assets, investments, this 1 year DATE prime rate, what will 1 year DATE Emily rate out of the PBO ORG , see on the back of the Friday numbers which you got in your screens right here. Aggregate finance saying lowest since records were first ORDINAL kept back in 2017 DATE let's bring in our chief north asia correspondent Steven Engel PERSON he's here with us to just set us up for the weekend DATE I mean yeah it's it's it's a weak economy isn't it? We're looking at camera I'm sorry. Look at you now. Let's do. Look at me now. Yeah. Right next to you. Okay. Data will talk about that as it relates to the MLF ORG Of weather China GPE 's in this liquidity trap of people not wanting to borrow even though there's lots of liquidity but let's look at the macro July DATE indicators that we're gonna get. Industrial production retail sales excessive urban investment. In addition to all these new home sales, property investment. Yeah. You can kinda guess those numbers are gonna be down but industrial production, you know, we've had the fairly strong export order In the last set of numbers there was some pent up demand and as exporters our manufacturers really got their production facilities back up and running and getting stuff out the door and out to the ships and off to export destinations but how long can that last? So we Dig deeper into the IP industrial production factory output according to the more than a dozen CARDINAL export managers survey by Bloomberg PERSON though David indicates factory orders are starting to shrink that didn't last long right no it didn't really last long so maybe it was pent up demand and this is a Harbinger maybe for some further weakness I mean we get into Rain that are details. Things like buttons, zippers, sewing thread, things that go into finish products you know in the textile industries. Down 30% PERCENT in July DATE . The orders for these things. Down 30% PERCENT in July DATE and August DATE according to these export managers. Overseas clients are looking to pair down their built up inventories that they built up in 20 CARDINAL Supply chain constraints now they're working off the inventories they're not ordering as much so IP it might still show that growth upwards but again it might show some signs of weakness coming yeah Steve PERSON just hold that thought we are just getting the wow okay
I'd still show that growth upwards but again, it might show some signs of weakness coming. Yeah, Steve PERSON , just hold that thought. We are just getting the, wow, okay. New COVID cases August 14 to Sunday DATE it has a two CARDINAL hand on it 2312 DATE I might have missed could've come earlier on and my producers about to help me out here we'll get to that later in terms of the high nine numbers which have been really making up not I would I wouldn't say the majority but the Sizable bulk of these numbers here. But then again, there's a separate conversation obviously with Sonia PERSON and maybe some of the stuff tourists there. Of course, I will get an update of that, but 2312 DATE . Back to you, you wanna try me on this. That's a good segway to retail sales. Yeah. Was has been in lockdown. You know, for the last couple weeks DATE , I guess. Okay, his more of a indicator of tourism, right? Yeah. And that kind of spending. It's a not a big part. It's oh. Six% Abusing that province to GDP and oh. Five% contribution to retail sales but again it will be a good indicator of whether there's a risk appetite for travel and if there's not a risk appetite for travel nationwide you're gonna start seeing that kind of spending in the middle of summer DATE start to drop so we'll be watching retail sales we're expecting a four CARDINAL . Nine CARDINAL That game but again as those export possible orders are dropping can they make that up with a domestic demand doesn't look like it if you look at the bank lending in this and that people are just all people don't wanna spend right now and that's where we get back to that liquidity tractors. Rates are low. Plenty of liquidity in the banking system. People just don't wanna borrow and a lot of that is attributed to the property numbers. So, we'll Looking at those new home sales plus also of course the property investment year to date year over year expected to be down five CARDINAL . Seven% so Headline number might look okay for a lot of these numbers showing a slight gradual continual recovery but again you have to dig deeper and see if it means maybe there's gonna be some pain coming down the road. So Steve PERSON we went to the liquidity trap here there's plenty of money out there it's just people are not lending or not borrowing I should say What needs to kinda be fixed here? What actually needs to be done to restore confidence and get that money flowing into the real economy? That's right. I mean, you have to solve a lot of the problems in the economy and property and to convince the people that they're properties are gonna be delivered and they don't need necessarily a boycott. They're mortgage payments and just a confidence, a boost Could be as well at the PBOC in addition to the MLF ORG setting here in what 20 minutes TIME less than 20 minutes TIME time they're expected to take a more cash out of the system because essentially there's too much liquidity in the banking But you're right lending let's bring up new loans those new loans in July DATE we're down sharply aggregate financing as David mentioned as well the broad is form of lending in the financial system Down PERSON significantly, but at the same time, Mtwo ORG , the broadest measure of money supply, was much, much higher at about 12% PERCENT growth, I believe, was the last number. There it is. So you're seeing lots of liquidity out there, but nobody is borrowing, so the MLF ORG what we're expecting today DATE According to eight CARDINAL of 12 CARDINAL economist forecast by Bloomberg PERSON the PBOC to withdraw cash through the MLF ORG for the first ORDINAL time this year DATE . Basically 600 1 billion MONEY you won maturing this month DATE . The median estimate is for the MLF ORG at 400 1 billion MONEY you won. Down 200 1 billion MONEY you on injection. But the rates to stay At 285% PERCENT . Let me just read you one last thing as far as the liquidity trap concerns that we've been talking about Yvonne Bloomberg PERSON Intelligence says the surprisingly sharp retreat in China GPE 's credit in July DATE that I just ran through new loans Aggregate financing in July DATE shows policy makers should put them on alert even taking into account the usual July DATE law and loans the data was extremely weak Dreamly ORG weak. Oh what are we looking for in terms of property investment this time around in the data Steve PERSON is there any signs of this trend which basically has collapse reversing anytime soon No there there isn't. According to the date, I'm just looking on the Bloomberg Terminal ORG here right now. Property investment, you're to date number, it's year over year, expected to be down.
Reversing anytime soon. No there there isn't it according to the date I'm just looking on the Bloomberg PERSON terminal here right now property investment you're to date number it's your over year DATE expected to be down five CARDINAL . Seven% we do have a bar chart on that you can see the trajectory down it was five DATE . Four% the previous month DATE but we're also getting new home prices month over month DATE expected to Another 10th ORDINAL of one% ORG . Depending on the city, obviously, and where there's more weakness. That's the average residential property sales here today DATE . Also expected to slump the prior number was down 31 CARDINAL . Eight% ORG . There's a problem in If you haven't heard. Yep eh did you say at least Steve PERSON thank you for that preview what to expect here today DATE to recap of that credit data as well let's get to the first ORDINAL word news we have Vonnie Quinn PERSON in New York GPE hey Bonnie PERSON hey Chinese NORP officials have signaled a thousands CARDINAL of tourists trapped in hotels on High Nan could soon return home frustration over COVID lockdowns on the resort island Over the weekend DATE . Authorities say commercial flights for domestic passengers out of Sonia PERSON should resume Monday DATE . However, travelers can only fly out if there are no new cases in their tool groups and hotels within the last 7 days DATE . A US GPE congressional delegation led by Senator Ed Markie PERSON landed in Taiwan GPE on Sunday DATE for a 2 day DATE visit they're meeting with One CARDINAL is president saying when and other lawmakers according to the American Institute ORG in Taiwan GPE discussions include global supply chains and climate change the trip risks keeping tensions with China GPE high after house speaker Nancy Pelosi's PERSON recent visit to the region Sign up in China Life Insurance ORG are among a group of Chinese NORP giants that to exit from US GPE exchanges five CARDINAL of China GPE 's largest state owned firms announced their intention to do list Friday DATE that's a spots over audits continue 200 CARDINAL Chinese NORP firms are facing possible deal listing in the US GPE as soon as 2024 CARDINAL unless Beijing GPE grounds access to American NORP auditors The chair of the US House Intelligence Committee ORG Adam Schiff PERSON says he hasn't seen any evidence that materials the FBI ORG sees from Donald Trump's PERSON home we're properly decasified Friday DATE that everything taken was decalsified or covered by executive and attorney kind privilege chef said that argument is absurd and he's asked US GPE intelligence to provide a damage assessment of the seas records Global news 24 hours TIME a day on air and on Bloomberg PERSON we take powered by more than 2700 CARDINAL generalist analysis and where the 120 CARDINAL countries I'm finally Quinn PERSON this is Bloomberg Yvonne PERSON . Later on but up next Wealth ORG management strategist to And Hong Kong GPE Supermarkets trying to open happy Monday DATE . While Tesla ORG 's in the like make for good headlines the reality is that even if every car on the roads today DATE when electric it wouldn't be enough to curb global emissions to avoid catastrophic climate change. Greenhouse gas emissions from transportation account for about 29% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? Buildings across
10% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? Instead of burning oil and gas to give us the energy and electricity we need we wanna do 100% PERCENT clean energy Vehicle is all electric with no fossil fuels. We wanna do that with our buildings and if we can do it in one CARDINAL building, we can do it in all buildings and if we do it in all We'll reduce 30% PERCENT of US GPE greenhouse gas emissions. Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving. Coverage starts August 25 DATE only on Bloomberg Television ORG and Radio ORG . You are watching Blue Markets ORG tryna open a big week DATE ahead here when it comes to markets obviously the Fed ORG minutes are gonna be the big one here on any sort of clues and really just how The next move is gonna be coming from the fellow reserve wait time with the bats and the size of September DATE hike now how big is basically we swallow between 50 and 75 CARDINAL basis points right a base help we've seen the recent job support the CPI reports as well meanwhile we got Central Action ORG in the Philippines GPE RBZ also out both expected to hike as well and the RBNZ ORG continuing to spearhead that global tightening cycle to cool those rising prices of jobs figures out of Australia GPE coming out on Thursday DATE as well we're kinda down today DATE at least to that data dump out of China Yep absolutely and in fact just for a bloomer clients TLIV going your terminals we're getting started right now with their blog there's a ton QUANTITY happening here ahead of that though just to recap you know our pulse survey that we did Week DATE . So, we talked about or we asked 60 40 DATE . Is that portfolio dead? Is that play dead majority think no, that's the viable at this point given of obviously where price of drop as you can see on your screens. In terms of whether or not this actually outperforms inflation and we're extending this 10 years DATE That's that's the key sort of take away from that 65% PERCENT yes If you would or if you had to replace bods what would you replace bonds with here the choices and I think I've almost a third CARDINAL thing it's other than these four CARDINAL you see on your screens Yvonne Yeah PERSON , basically not crypto, right? Only six%. Everyone's getting into kind of private equity. Gotta go to real estate. Also maybe catching a bit of a bit there. Let's bring our guest. I'll be last hour TIME on here, senior investment strategist, charter wealth management. He is in the camp. That 60 40 DATE may not be dead just yet. This debate was happening 2 years DATE back I think the the results would be very different because Which at first ORDINAL investors to you know allocate more to equities and take on more risk but you know the sell of that we have seen this year DATE is very very unique it's only the fourth ORDINAL instant since 1870 DATE 's where both bonds and equities are down here today DATE and the the shop decline in bonds that we've seen Husband that yields our close to decade DATE highs you know across most of the major acid plus so we think that you know going forward we would prefer to be diversified across equities and months DATE especially given the the risks to global growth and add the margin we would be looking to allocate a bit more to bonds at the expense of equities. Okay if if I can I continue that strategy can I still be positive about on stocks and bonds and interest rates are gonna continue to rise then I'll be lashed So we are neutralum on stocks and bonds so we think that clearly
Strategy positive on on stocks and bonds and interest rates are gonna continue to rise then I'll be lush. So Brian Newton PERSON on stocks and bonds so we think that clearly there is a lot of uncertainty as far as growth in US GPE and Europe LOC is concerned even to a certain degree in China GPE right so it it makes sense to take a more concentrated or more specific beds within certain geographies rather than being over the overall acid Because you know while we have seen equities decline here today DATE we've obviously seen a big bounce back which is not uncommon we have seen bear market rallies happen in in past recessionally in the recessionary cycles as well so we don't So, you know, within equities, we do have a preference for Asia Japan LOC equities as well as UK GPE equities and within bonds we favor Asian NORP dollar bonds as well as develop market high yield bonds as we think that the risk reward in these areas is quite attractive at the moment. Okay understood and part of your key assumption ahead of the Fed Minute this week DATE is what the dollar index tops out 107 50 MONEY US GPE 10 year DATE I believe it's three% the call from you guys not to say that those projections are wrong but you know Basically these conditions were were one CARDINAL bad inflation report away from those things going wrong what's the risk to that view? Absolutely I mean we have to realize that if you look at the volatility in the markets as well as economic data it is fairly high and and stock markets and boilings have been quite sensitive more than we have been accustomed to if you look at moving next right now in our Be the pullback and market expectations in terms of federate heights after the the July DATE inflation print has been a bit overdone so we think that there is a risk that the Fed ORG minutes will indicate feds you know inflation fighting stance and we have seen that come through in the Fed ORG Speaker you know speeches as well There is a risk that markets do at just a rate high probability a bit higher towards 75% PERCENT and that could boost the dollar and the yields a bit more but we think from a long term perspective it's difficult to see 10 year DATE yields breaching 325 CARDINAL . Again from a sustainable perspective Understood ORG . Now, I believe just hold in a second ORDINAL because we should be getting delayed latest the PBOC setting, the 1 year DATE MLF ORG it's not out just yet let me just check that on my terminal no not I'll just Where is China GPE in that? But we think that China GPE is obviously a big component of our overweight Asia LOC call given that it accounts for around 40% PERCENT rate in the index now we are bullish on Asia LOC and Chinese NORP equities for three CARDINAL key reasons right one is if you look at valuations of we think that valuations are below historical averages and from a Perspective. They are a bit under road. So, that is something that that reduces the impedant impediment for the performance. The second ORDINAL reason why these are set classes have under performed in the past couple of weeks DATE is due political tensions and they are set to continue with with the latest with delegation. But from a long time perspective, due politics really ends up impacting Returns on a on a prolonged basis unless we do see a bar player up and third ORDINAL we think that you know Chinese NORP economic data should be positive both retail sales and industrial production that will get a little later today DATE so that should boost market sentiment. Yeah. Just wanna break those lines crossing on our bluebird right now. The PBOC. Hey, they cutting rates. Tell her a one CARDINAL Cut from 2:85% PERCENT . To 275% PERCENT . This is a 10 CARDINAL basis point cut of that MLF ORG rate conducting also at 400 1 billion MONEY B of that operation as well Dave PERSON I we were not expecting a cut here today DATE . No not not at all in fact they haven't touched this one all year certainly indicative of where they want to guide markets towards right now they're also at the same time though it's also worth noting they're also taking some money System PRODUCT . So, net net. I just trying to work out my head with that bite. Actually, mean, but certainly, the broader story here, there's a week DATE ahead of me. A lot of money supply, not a lot of takers for credit for example, and this is a wash with liquidity when you look and say inner bank rates for example, right? So, the last time they actually Lashes where I'm just checking my terminal right now was in November or late last year DATE from 2:95 TIME : we went to 285 CARDINAL and right now we're 275% PERCENT . Yvonne Your PERSON response to all this that we are seeing a ray cut from the BBOC here.
At seven CARDINAL five% Yvonne PERSON I realized your response to all this that we are seeing a ray cut from the BBOC here your thoughts. Well yeah it it certainly comes as a surprise that I don't think anyone in the market was expecting that now I think if you look at it in in conjunction with the data that we saw the weekend DATE obviously we saw a big drop in aggregate financing numbers in in the new loan numbers so I think we the the rate cut the surprise rate cut is a response to that and it's it's It's a response to us PBOC trying to support the economy given the risk that that we face. Now, I think from from a from a messaging perspective, this is also a big shift because just last week DATE , we did see PBOC sounding a bit more hockish after the inflation print Slightly higher. So, you know, clearly, it's it's one of the it's it's more continuation of the same where previously is still remaining supportive and trying to help the economy recover. Given the slowdown that we have seen. So, I think the markets would should react to this in a positive manner going forward. You know, there's another red cart. I just hold that thought also. They're also moving on the 7 day DATE reverse repo rate. They're all to taking that to two% ORG from two CARDINAL . One% so that's two CARDINAL key benchmarks as far as that's concerned. It took me not really expected You're seeing right now. What does this do for fixed income in China GPE where the sense was inflation Week at least was something on the radar of the PBOC that might be something of course that bond bulls for example would have to think about does this change anything? Well I think if you're looking at it from a onshore market perspective yes add the margin it does reduce the risk of of yields moving higher and that could mean that the outperformance of Chinese NORP government bonds which have been you know a big standout in the global board market space Could be set to extend further right but from from an offshore credit space I think it doesn't make much much difference right because if you look at Chinese NORP corporates lately face stresses from from from slower economic growth so unless we see signs of of Sustainable rebound in economic growth in China GPE . Spreads good continue to remain wide in the next 1 to 2 months DATE . Though on a 1200 CARDINAL basis we still expect them to compress given that we expect Chinese NORP recovery to together seen as we go along. I'll be like fantastic and we'll speak to you soon again. Instead of chart of wealth management you can all determine by the way on this very very busy Monday DATE morning TIME for everything China GPE really TLIV go on your Bloomberg PERSON terminals there in case you missed it PBBC ORG out with two CARDINAL Ahead of course up the open Yvonne PERSON . That's something to wake up to, right? Some good news finally maybe for these markets. That we've been seeing of some time when it comes to China GPE . In terms of stocks to watch, we're definitely watching some of these essays very closely here that likes of Petro GPE , China GPE , Hey companies that we've been looking at here Mentioned about D listing are the US GPE as well that news came out on Fridays DATE it's certainly we did see a drop on Friday DATE in the US GPE significance down about one and CARDINAL a half percent or more we're take a look at what it comes to also these Evie makers as well it's a big big week DATE when it comes to earnings for some of these EV ORG makers the auto is the next one here today DATE as well lot of signs that maybe a Those are coming back. In any of these companies as well Dave PERSON . On balance things are bit more constructive rights as we approach the open today DATE just partial list obviously of what we've been tracking here in case you're also missing it we're also getting new home sales and well not new home sales Cities that are exhibiting Your increases that's green and red as you can see that dominance really where you see home price deflation in China GPE we'll get an update of this in just a couple of minutes earnings very quickly if I talked about this yet likes I think it's Lee PERSON Auto coming out today DATE just very quickly have a glance at this yeah there we go sunny optical Yvonne PERSON . Yep and we got analyst actions we're focusing on the property space as well some call some city as well as JP Morgan ORG cut to an underway for times China GPE from JB Morgan PERSON soon out China GPE as well as sci ORG fi whole
Soon out China GPE as well as sci ORG fi holdings cut to a neutral There. There we go. Everything else coming up. There's also this debut here today DATE . It's back the 50 day DATE moving average is in focus in the Shanghai GPE . Compose it. We're coming off lows in future. So, the direction is on the way up. The open is next. This is Bloomberg PERSON . Good morning TIME . I've always been a person who's just been attracted to hair I like to sit and think and theorize how I can manifest these visions that I have for braiding and how I can take something that Macy ORG The line drawing in my mind and apply that to someone's scalp We are the only culture that has here that grows out of our head the way that it Anyone from the African NORP diaspora is born with this amazingly curly hair that can be shaped into a variety of different ways of expression I want black people to love themselves for how they naturally appear and also to appreciate the cultural practices such as writing that our ancestors have practiced For centuries DATE . Alright, good morning TIME . Welcome back to the shows. If you haven't had your coffee just yet, I love that tends to pick you up. Hear something. PBOC, unexpectedly cutting interest rates, the 1 year DATE MLF ORG , down 10 CARDINAL bips, and all to the 7 day DATE reverse rep Seconds TIME away here on some property. Right of course this still remains the the big head when it comes to Chinese NORP economy and perhaps why we are seeing those two CARDINAL rate cuts that we saw just a few minutes ago TIME when it comes 7 day DATE reverse repost as well both a 10 CARDINAL basis point hike how positive that is going to be for the market here today DATE still a key question as well and it does that mean the the data we're Get the top of the hour. Activity data. Is is it gonna be bad? We're we're hoping for some sort of recovery from what we saw as well. Here's how they open us very at least in Shanghai GPE . As well as in here today DATE . Seeing some decent drops here just about fit the one% ORG . Pretty slow going. Not much reaction yet. When it comes to the stimulus measures that we did just see there as I'll take a look at the big moves in the currency, big moves, and rates as well on the back of that MLF ORG that rate cut. We've dimensioned about dollar China GPE and the moves there are 675 13 CARDINAL for your offshore rate the entree rate 674 28. We are seeing yields legging lower here today DATE 271 CARDINAL for your Chinese 10 year EVENT yield now and Crew PERSON not doing too much in Shanghai GPE but slightly lower by a close to one% ORG we're watching Hong Kong GPE very much in focus in terms of earnings as we've been talking about the lives of Lee Ottos PERSON any optical the likes or coming out with earn Here today DATE . We are also slow going. A third CARDINAL of one% ORG lower for the hang sang as well. We're just up above 20100.
We are also so going a third CARDINAL of one% ORG lower for the hang sang as well we're just up above 20 1000 100 or so it just tech a marginal losses here also with property as well some stocks in focus we're focusing on we mentioned about those deal listing concerns those companies those SOEs that announced on Friday DATE that they were gonna be delisting from the US GPE China GPE life insurance petronako those are the ones that were listed as well side effects And also what we're looking at earnings, earnings, earnings, we had high, low coming out with a profit warning as well, I think you look at what it comes elite auto, coming out Income there and you have new home prices Dave PERSON . Yeah we we do okay I'll take this for me right now there's a ton QUANTITY happening so. 11% PERCENT that's month DATE and month DATE that's across all it depends on what city you look at of course but the overall trend really is 11 straight months 11 DATE one one so one It takes us back to a full year DATE of home price inflation in China GPE . 11% PERCENT declines an overall home prices on the Chinese NORP meal that let's well let's take this piece of data let's take what the PBOC did and reducing to to benchmark interest And let's bring in June DATE Hung Lee PERSON founder and CEO of JL Warren Capital ORG . They're an independent equity research from focus on Chinese NORP companies and of course listed multinationals. Then China GPE , Thanks for joining us. I know the overall stands from from your end is that it's very hard to be constructive and and and really optimistic on any Chinese NORP asset class at this point. How does what the PBOC did a few minutes ago TIME change things? If at all. I think there are three CARDINAL main factors concerning China GPE and Chinese NORP economy, Chinese NORP equities right now. 1 years DATE it's a COVID policy. The other Real estate and overall you leverage campaign and the last one is the geopolitics especially when it comes to Taiwan GPE and the And the US GPE . I think all three CARDINAL factors are incrementally negative week DATE by week DATE , a month DATE by month DATE . Chinese NORP equities. However, we believe the easing does come will be very targeted that you infrastructure spending. Infrastructure projects as opposed to a real Because I think they'll he leverage campaign is pretty clear setting it's direction I mean the housing market even though the price come down you know. One% The overall over the past the 20 years DATE annualized the return on home prices in China GPE has gone up more than double double digits every So that's literally like nothing. That doesn't change the overall direction of of of you know real estate. The bubble in either real estate Determination that we see from the government. Right and a lot of other sectors not primarily of course in real estate itself. Do depend on what happens in the property market. Do you also avoid those Supplementary sectors to the real estate sector. Of course, real estate is about 30% PERCENT of China GPE 's GDP and it's a big, a big, revenue contributor to a local government Budget ORG . We are seeing right now is just give you example I mean some sectors that people will not expect that to be impacted by the downpour of the physical budget and local levels such as ED ORG subsidies or the purchase Substitutes ORG now are coming down because local government realizes that they don't have the money to to support consumption and economy. So, I mean, I think a lot of Impact on different sectors. We are going to see in the earnings that's coming out in the week DATE or two CARDINAL . I'm a bit confused on her about just the news that we got from the PBOs see so they're draining liquidity but they're also cutting rates. Let Nat PERSON what does that mean? I mean I think it's more symbolic implying that they under
Liquidity but they're also cutting rates Lynette PERSON what does that mean? I mean I think it's more symbolic implying that they understand the great impact of COVID and potential Economy so oh COVID we've been talking about this for a very long time it is and people are hoping that incrementally you will However, now we see everyone's cities get hit by this very rich implementation of the COVID policy in July DATE . It was turned through and this month it was high nine. So, all those numbers, I mean, we are seeing nationwide on Recall traffic. Consumption the For example in the fall DATE after the after Congress ORG . The most population will have such a deep grounded fear that this COVID is Debilitating disease and even with the incremental, you know, relaxation of the of the headline. We are not willing to go out and go back to their normal lives. Because they don't want the, you know, just accidentally get this infection You know and which will impact that their employment et cetera. So I think that will take time to to change the people's behavior such that you know we're just going to see the week DATE coming up consumption for a while. I was gonna get the consumption because one sector that you're a bit more bearish on is EVs when when the rest of the market almost seems Saying if there's any sector that's gonna benefit from the reopening story, from the stimulus story, policy tail is alike. Is the EV ORG sector? Why go against this trade? It's exactly what you said because the perception is such that it has the tail wing of the policy support Like we said like what we are just we were just discussing right? I mean the COVID and COVID policy in Hey Such that you know we're still seeing this double digit style in reheal traffic and local government fiscal budget is not in a great condition to continuous Subsidies in many local areas so I think We will start to see the monthly DATE delivery pay there to weekend in most to come actually we already seeing that you order Hey And we are expecting that Qthree is going to be really challenging and particularly in summer DATE EV ORG So when Neo PERSON has perhaps EP five LAW coming to the market in Q four CARDINAL and couple of more new models coming up Next year DATE . Has a new model coming up relatively soon. Doesn't have a straw. Pipeline. So, it's going to lose market share to not only Neo PERSON , not only you know, Lee PERSON and the pure playing EB space but also traditional. EB make traditional automakers such BYD ORG and new commerce such as Leap LOC which is supposed to be a new IPO ORG soon. So, we are seeing this segment is getting extremely competitive and I think that's something that you masters 40 CARDINAL embrace the app Do you know I think the if I remember correctly Latest bank of America GPE fund managers survey either last month DATE or the month DATE before that You know a lot of them on the buyer side have started to relook at exposure to China GPE or pivot back so I certainly need to sell side will tell you as much if if not more is there any part of this Chinese NORP equity market or bond market given repricing is that you're actually bullish on. No unfortunately no I mean I wish I could say yes.
Part of this Chinese NORP equity market or bond market given repricing is that you're actually bullish on. No unfortunately no I mean I wish I could say yes So so I'm sure there would be a group of companies and group of sectors that benefit from you know the new sort of dynamics of accelerating investments in tech and the sort of military infrastructure as the the Reset. When we think about you know offshore investments Nominated Lot not a lot especially you know those meet with the liquidity criteria so if anything we still think that there are some short ideas that are you know reward attractive as opposed to a long ideas. Okay and we'll talk about that next time and get into that further I'm sure a lot of people would like to hear about those culture and how many thank you so much for joining us in the US GPE out of JL Warren capital let's get it over now from well the West Coast LOC to the east coast LOC in New York GPE wanting Quince PERSON there she has your first ORDINAL review Thank you. Us capital police say a man crashed his car into a barricade and fired a gun into the air several times before fatally shooting himself. Police say the 29 year old DATE man may have said fire to his own car. And was being approached by officers when he shot himself. It's still not clear why he chose to drive to the capital area. According to the It doesn't appear the man was targeting any members of congress Water ORG levels are the key way point on the Ryan River LOC are expected to study at an extremely low level this week DATE as a climate crisis adds to Europe LOC 's energy crunch many barges can't transit past the margarit cow which is west of Frankfort LOC when the water level is about 40 cm QUANTITY or below it's currently at about 35 CARDINAL The Ryan is Western Europe's LOC most important river for transporting fuel and other goods. Salman Rushty PERSON is starting to recover in 2 days DATE after being stabbed at lecture in New York AP GPE has closured his agent saying the author is now on the road to recovery Russia GPE has said to have been removed from a ventilator Sunday DATE and is able to talk and joke the author of the satanic verses suffered serious injuries on Friday DATE after being Multiple times shortly after taking the stage Former Jane PERSON 's death at the age of 59 DATE was announced on Saturday DATE after a 5 year DATE battle with cancer. Investment banking business and turning the German NORP lender into a global trading powerhouse Billionaire PERSON investor Has died. He was 62 DATE . He was dubbed India GPE 's war involved due to his reputation for a long-term equity investing and was among the most influential market voices in the nation. Started my shares with a loan of $ 100 MONEY in 1985 DATE and along the way invested in some of India GPE 's most prominent names including its biggest jeweler, Titan GPE , and airline startup at Casa Air ORG . Global news 24 hours TIME a day on air and I'll do very quick take power over 2700 DATE journalist analysis and more than 120 CARDINAL countries I'm Donnie Quinn PERSON this is Bloomberg PERSON . Right just ahead we had some earnings out of a ram coast we'll talk about that in a couple of minutes TIME Very, very simply, the biggest quarterly DATE profit of any listed company, massive, massive numbers, they will have a closer look at that Unexpected ORG rate cuts cuts in fact there out of the PBOC that's all I had this is Bloomberg PERSON
The difference between endless research and a winning strategy. Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis to accelerate the research process. To grow your practice and make better use of your valuable time. The difference is Bloomberg Law PERSON Choose Bloomberg. Hey Well the recent rally in oil prices certainly did house how do you arrive Another record as David mentioned it was the biggest quarterly DATE adjustive profit of any list of company globally a $ 48 MONEY . 4 billion CARDINAL worth let's bring a suitcase joining us with more and Sue quite Fall there. We know where it came from by Russia GPE invading Ukraine GPE pushed the oil prices up well above one CARDINAL One CARDINAL point and that has been a windfall for many of the big oil companies but nobody appears to a It as much as Saudi Arabia GPE Stay controlled oil company 48 CARDINAL . 4 billion CARDINAL in profit free cash flow As well as to expand capacity Transitioning away from fossil fuels but they see demand for their products continuing to Economic pressure on the short term global forecast but we're seeing this kind of boom for a lot of energy companies exon and shell post Oil prices served well above 100 CARDINAL they've been retreating for several Economic conditions globally and what that may mean for demand. Well speaking of oil's been on the down trend from last week DATE in fact I think we close below a key level on Friday DATE and we're seeing some weakness today DATE see what's been behind this drop in oil prices yeah actually Trading I think below 92 in Agent Trading and Nata extension the last we saw Friday DATE a better than two and a half Drop DATE in new york GPE trading so yes oil down and that has a lot to do with the mix of both bearish and bullish Trader Wing PERSON . European Union ORG brokered nuclear deal if To the right guarantee so that would possibly put more oil supply out there that's bearish and then you've got cooling inflation that could ease the pace of Hikes ORG . Now, looking at the Bloomberg PERSON here, if you look at the blue line, which is against inflation, the white line, the blue line has dropped off significant That's the price of gas at the pub here in
For the first ORDINAL time since March DATE kind of a relief for consumers and a Us GPE should fall further but significantly in terms of direction of Short term looks We've got another like lower to go. Suki and live for us out of New York GPE . Let's get it over now. Also in New York GPE , Vernie Quince PERSON , there she has your latest business flash headlines. Ronnie. David, thank you. Chinese NORP deliver a long four CARDINAL group. It said to be receiving a 447 1 million dollars MONEY syndicated loan which would potentially alleviate market concern about this liquidity. As sources, the company has reached an agree Design ORG a contract for the loan with state owned and foreign banks as early as this week DATE . Blue scope steel is reported underlying fully profit of one CARDINAL . 9 billion US dollars MONEY meeting the average analyst estimate revenue of 13 CARDINAL and a half one 1 million QUANTITY was up 48% PERCENT on the year DATE bluescope so continued strong demand for steel products despite recent volatility the board approved to buy back increase of up to 356 Over the next 12 months DATE Those who latest business start headlines. Yvonne PERSON . Alright Vonnie yeah six% out for Blue Scope we'll be speaking with the managing director at the CEO Mark Vasella PERSON live here on Lubert Television PERSON that's gonna be 10 AM Hong Kong TIME time 12 PM TIME Sydney GPE on the back of those Results as well. Dave PERSON . Another record for them just a change of the marketone narrative here. There we go. Session highs and Chinese NORP equity markets after those two CARDINAL rate cuts out of the PBO ORG , see a 10 minutes TIME ahead, some key activity data coming That's all I had in a preview of that suit plus a recap of what they did 30 minutes TIME back this is Bloomberg PERSON Today DATE 's CFO ORG 's are reshaping the sea suite positioning companies to meet the next generation of challenges breaking out of traditional roles to become G Future Officer One ORG of the most important things is looking around the corner. Right welcome back to the shows the I look at our chart here of the just sort of spaghetti and ABC ORG noodle soup of PBOC rate interest rates here and there we go the two CARDINAL unexpected cuts 1 year DATE Left and your seven CARDINAL date reverse repo let's bring in James Mager PERSON our greater China GPE editor joining us right now James PERSON we're getting it we're gonna get some data in about what just under 10 minutes TIME from now was what they did a preview perhaps so bad that data's gonna be I think what you saw today DATE was a reaction to what the day we got on Friday DATE with a credit date that came on Friday DATE which showed us a collapse in loans both to households and to to corporate to companies. Yeah, incredibly weak.
Collapse And to to corporate the companies. Yeah, incredibly weak. Learn demand from, from companies, and I think that PBOC is reacting to that. By trying to make landing a little bit cheaper. The problem is that, you know, there isn't a lack of credit in the system. There's a lot of cheap credit in the system. Banks can actually borrow from each other cheap and that they can borrow from the, PBSC and the loans that were they're the PBS ORG you put out today so the problem is that there's a lack of money and it's other than money is too expensive and so making money cheap by cutting rates will help that problem is there's just like a credit demand a companies don't wanna borrow households don't wanna borrow so it's unclear how much of an effect this this rate cut from the PBSC this morning TIME is really gonna have to boost credit to man and to boost to boost Yeah, a lot of questions about that. New cases James Hollis PERSON I can reporting 1162 DATE COVID cases there. Obviously this is where we've been seeing most of these COVID infections in China GPE . We just broke up. I think about 2000. A nationwide. I just wonder Tourist destination under once again a lockdown. I mean the services industry in China GPE has been decimated the last two and a half years DATE I mean I don't holidays last that we put lasting and the number of hotels that were shot the number of restaurants that were shot you know it's been incredibly damaging for tourism for services for travel all those kinds of things so I think you will see Overall retail sales and overall consumption people are still have to go shopping and buy food and things but you know without a change to the COVID oh policies and without a change the possibility that you could get locked down at any time where have you go anywhere you know there was video I've people being locked down today DATE in an IKEA ORG in Shanghai GPE over Can you Tourism sections in the economy. There is a change in COVID oh. I mean there there are worst places to be locked in than Ikea PERSON at least there's so many to lie down on there but yes point take Not bad too. Market, couple of market checks, or of course right now, equity markets on the way up. This yields are continuing to push lower in China GPE , Chinese NORP tenure yield now below two CARDINAL . Seven%. The data's breaking next. This is Bloomberg PERSON .
Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and you know, the digitalization of everything. Tell me what aspect of your life, Emily? Is it becoming more digital? Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semi conductor industry overall and estimates are a one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that needle. Here we go. Welcome back to the shows here. It's almost 10 AM. We're here in Hong Kong GPE up in Bay LOC . Welcome to Bloomberg Markets ORG . Asian NORP , David Inglass PERSON with Yvonne Mann PERSON . Juan PERSON . That we're just seconds away from that data done july DATE activity data out of China GPE and yeah before even that happened we have a surprise breakouts from the See here this morning TIME when it comes to MLF ORG the 7 day DATE reverse repo so you are seeing equity markets in Greater China LOC basically turn into the positive now that was not expected you also knew home prices 11 straight month DATE where we have seen prices fall so it doesn't go well for what we are about to see here perhaps in July DATE Yeah it might that be a preview of this one right this is is one CARDINAL part of the narrative the other one is it was this a reaction also what James Maker PERSON pointed out a reaction to just that collapse in in an actual credit number the numbers are out alright here we go there's a ton I'll start then you you take some right okay industrial production ooh Oh my goodness. Alright, that's a big mess. Three CARDINAL . Eight% ORG . The estimate is for four CARDINAL . Three% GPE . Retail sales two CARDINAL . Seven% estimate 491% PERCENT . Yeah that's a quite a sizable miss there we were expecting maybe some sort of rejuvenation and retail sales and consumption side of things here fix acid investment we're talking five. Seven% that also was lower than expected and properly investment this is the big one we've been watching For as well. Six. CARDINAL Four% that is bigger than expected to Dave PERSON . Yeah Trying to look for a silver lining here. Well, well, the jobless rate fell, right? A 545% PERCENT . and a half percent PERCENT was the estimate. Let's get instant reaction, a hell and chow is here with us on set, both global research apex. Economics hit and also great Of course. So, yeah. All yours. All yours. But I would say that it still showed that the Current.
I would say that it still showed that the domestic demand is currently pretty weak and in dust warrant more policy easing so ask the surprise interestary card this morning TIME seems to be suggesting policy makers are concerned and they want to make a gesture 10 CARDINAL basis points is almost like not a big deal right It's a small gesture but at least it shows that they care. But if you look at the IP ORG for example, industrial production, that seems to be much weaker, and at the time one, you know, exports were still holding up relatively okay. That seems to be suggesting that the message man is particularly weak. At the same time, retail sales, I think that's a bigger mess compared to to And this is saying that consumer demand is very you know very vulnerable at the moment and it does require more stimulus. So it it doesn't seem that well one CARDINAL pillar to your point was exports. Right? Doesn't seem well that's gonna go away because of the slowdown happening and you're already seeing signs of that now. Easy growth now. Oh, yeah. With this, I mean, just ballpark really of where you think you might need to revise your forecast. Standing at So first ORDINAL half was a two CARDINAL . Five because we had a four. Eight and then oh. Four CARDINAL . Yeah. But then in the second half DATE we're expecting a close to four% in the third quarter DATE , a close to five% in the in the fourth quarter DATE . So in the way this has still has some assumptions based on the fact that we are expecting a reopening after the Congress ORG in October DATE if that does happen I would say that there is a good chance we're still gather three CARDINAL . Five% for the whole year DATE . Okay that's a that's a big assumption Helen PERSON and I wonder the fact that we saw these policy cuts here today DATE should should I assume that the PBOC you'll in terms of Priorities and what's on the agenda is supporting growth still the big theme. Well, they certainly is. The PPOC ORG has a very important policy target that includes a growth stability, you know, job market growth as well as inflations stability. But at the I would say that they are current priority should be shifting definitely more towards the growth supporting part but if judged up by the the the Third quarter DATE monetary policy report that was released the last week DATE it seems that they still have some lingering concerns Inflation Already as low as oh. Eight% ORG even lower than what we see in Japan GPE I don't know why that we still have to be so worried about inflation at a time when the message about it so weak so it's good to see that they're finally cutting a bit despite the fact that the you know the US GPE is still hiking So should I be worried about capital flows outflows increasing then that pressure? Well, I would say that at the moment you know, judge by the most recent imperical evidence. There doesn't seem to be, you know, a lot to worry about at the time when current council plays still at all time high. Because of the very high trade surplus and the the ones that we have seen in the past a DATE few We're so high. Extremely weak and that was the reason why that we end up with a very high trace surplus and current council plus and at the same time very little pressure in in effects clearance in settlement Even if China GPE cuts rates we're going to see too much pressure on on the exchange rate front Ask your thoughts about property and what they do about this. Obviously, private investment is falling. You see that with prices themselves falling. Is there a magic pill? And how long do you think will be in this sort of boat before we see some semblance of a recovery Well, I'm afraid that we're not expecting any, you know, silver bullet to be taken at the moment. In fact, we think that central government is most likely going to stay still while encouraging local governments to help more with about ensuring the Circumstances unfortunately I think the best that we can expect is probably
So and there's such circumstances unfortunately I think the best that we can expect is probably the ongoing construction of residential properties in picking up the pays a little bit in the near term May DATE not necessarily see too much improvement and therefore we are hoping that there could be more top down measures coming from the central government and hopefully we can see a little bit of improvement you know with with more confidence coming back After the the completion of the CPC ORG so that we can have a better picture that may include for example they establishment of a stabilization fund. Why why do you think that is? Why do you think we haven't seen more forceful measures from the central government? I think that's a key new ones here Well I think the central government is still very much you know holding on to the idea that of housing is for residential purposes not for speculative purposes it's called This has been in place since 2016 DATE and president Xi PERSON has been sticking to this particular you know principal for a very long time. So even at a time when you are looking at the the property market you know Doesn't mean that they could do more from the central government Perspective in our view they should and they could but at the moment we still have seen there a little Helen PERSON as always thank you so much for your time and making your way of course here to our studios Helen Chow PERSON they're out of both a global research there And yeah Yvonne PERSON for our viewers and clients of course. Yeah T life is on fire here this morning TIME on the back of that data that MLI ORG all that that just happened in the last hour or so here also quoting Helen Chow PERSON already about her her reaction to this data quote not exactly pretty according to Helen PERSON We'll get a little bit more of that analysis and we're extra editors throughout the day DATE as well. We're also hearing more from the the statistics bureau. In that press conference Yeah. Now, here we go. Breaking news, not really breaking news. We've been tracking this but your ten-year DATE bond yield has just been going through the floor in China GPE . We're down five CARDINAL , six CARDINAL basis, points, lowest level, now since May 2020 DATE on that one, we started out north of two CARDINAL . Seven%. We've now clear that last I checked 268 CARDINAL . There we go, 268 CARDINAL . Send down five six CARDINAL basis not really a big surprise given a weakness and a date and of course that mood that they did on benchmark lending rates least some of it of course in money market rates. Alright, let's get it over and out of Vonnie Quinn PERSON . She is in New York GPE . She has your first ORDINAL news. Ronnie. David, thank you. Two CARDINAL . Two% below the economists median forecast of two CARDINAL . Six% consumers spending which counts for more than half CARDINAL of Japan GPE 's economic output led the growth Porter PERSON GDP was revised to an expansion from a prior contraction. A US GPE congressional delegation led by Senator Ed Markey PERSON landed in Taiwan GPE on Sunday DATE for a 2 day DATE visit. They are meeting with Taiwanese NORP president saying when the other lawmakers according to the American Institution Taiwan ORG discussions include local James and climate change Recent visit to the region. Chinese NORP officials have signaled a thousands CARDINAL of tourists trapped in hotels on High Nan could soon return home. Over COVID lockdowns on the resort island sparked protests over the weekend DATE . Travelers can only fly out if there are no new cases and there are two CARDINAL groups and hotels within the last 7 days DATE . Sign up pack in China GPE life insurance are among a group of Chinese NORP giants to exit from US GPE exchanges five CARDINAL of China GPE 's largest state owned firms announced their intention to deal list on Friday DATE that says the spot over audits continue Access to American NORP auditors Us capital police say a man crashed his car into a barricade and fired it onto the air several times before fatally shooting himself.
Us GPE capital police say a man crashed his car into a barricade and fired it onto the air several times before fatally shooting himself. Say the 29 year old DATE man may have said fire to his own car. I'm just being approached by officers when he shot himself. It's still not care why he chose to drive to the capital area according to the police. It doesn't appear the man was targeting any members of congress ORG Salman Rashti PERSON is starting to recover 2 days DATE after being stabbed at a lecture in New York GPE . The AP ORG is quoted his agent saying the author is now on the road to recovery. Rushy ORG has said to have been removed from a ventilator Sunday DATE and is able to talk and joke. The author of the Satanic versus suffer Injuries on Friday DATE afternoon TIME Global news 24 hours TIME a day on air and on Bloomberg Quicktake PERSON powered by more than 2700 CARDINAL journalists and I lost them with a 120 CARDINAL countries. I'm Yvonne PERSON . Alright Manny PERSON just a recapping of course a day that we got here it was definitely alarming that's what A is that calls this set of data that we saw in July DATE perhaps why we are actually seeing so much action this morning TIME when PBOC we're seeing a lot of pressure on the Beijing GPE of the China Statistics Bureau ORG now talking a little bit more about this in terms of their statement that they're reading out here right now they mentioned about momentum of the recovery is there but we must be aware the stackation risks of the world economy are increasing and the foundation for the recovery of dome Economy is yet to be consolidated. Dave PERSON , your thoughts. Yeah, I mean over the last few minutes TIME , well, we've been seeing that the equity markets have turned lower now and yeah, that is an issue on that China GPE cannot control, right? What they can't control to a large extent is domestic demand and if external demand starts the weekend DATE , that becomes really a big problem. In fact, we'll talk more about the outlook here for external demand bluesco Reported record earnings earlier on there's will be joining us in fact in a couple of minutes TIME we'll talk to him about that in his outlook and if they're seeing any signs of external demand falling that's next this is Bloomberg PERSON . While Tesla ORG 's in the like make for good headlines the reality is that even if every car on the roads today DATE when electric it wouldn't be enough to curb global emissions to avoid catastrophic climate change. Greenhouse gas emissions from transportation account for about 29% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? Buildings across America burn fossil To give us the energy electricity we need we wanna do 100% PERCENT clean energy Vehicle is all electric with no fossil fuels. We wanna do that with our buildings and if we can do it in one CARDINAL building, we can do it in all building And if we do it in all buildings we'll reduce 30% PERCENT of US GPE greenhouse gas emissions. Cryptocurrency Hey Facebook Bloomberg. Hey Facebook
Hey Hey Facebook Welcome back to the show let's talk earnings and blue scopes steel hair record result massive jump in the net number there we go on your screens top end at bottom line really so it's it was a very good year here Yvonne PERSON . Yup, adding to share. Buy back efforts as well. Let's talk more about that with Mark Vasella PERSON , Bluescope Steels GPE , managing director at CEO joining us now. Apply from Melbourne GPE . Mark, thanks so much for joining us. Yes, they'll Defy PERSON all that and deliver these record profits. Tell us how. Yeah look I'm in a really strong result for blue scope the best result that we've had in our 20 years DATE is a listed company what we've seen across our our Footprint PERSON has been really quite strong demand. We saw the run up and still prices particularly in the US GPE in the last 12 months DATE . The the cost position that we have our business in we're very focused on making sure we keep our costs low as put us in a position where we've been able to take advantage of those macro tail winds and that's really what's what's driven this record result for And having said that though I mean we talk about the headwinds obviously there's been supply chain issues through the impact of COVID-19 rising labor input costs as well I wonder what what is the outlook mean for you then is it still as optimistic and you continue on with with these sort of Gains here or you know is this as good as it gets for blue scope? Well I think certainly we're forecasting the outlook for the first half of the second year DATE to be not at the levels we're at and that's largely driven by pricing What we saw over the last 12 months DATE with hot roll cool prizes prices almost reaching 2000 US dollars MONEY a ton was an extraordinary level of pricing that's a level of pricing that We won't expecting or or requiring at the state that level we were certainly in a position to take advantage of that pricings now back around 800 Us dollars MONEY are ton. That's still a very healthy price in terms of the long run average which is more like $600 MONEY a ton. So we've got into an eight CARDINAL to 900 1 million dollars MONEY Ebert for the first half DATE of the new financial year DATE which in Local terms if you weren't looking at it immediately after the record result we just posted is still a very healthy result for bluescope. Hmm. Mark your guidance as far as cash flow is concerned given the catfish that you have announced in your in your press release here. Tell us a little bit more about, you know, the seeds you're planting for the future. Yeah, it's very good question. I mean, we think we think about certainly the cash regenerated this year DATE . $ One MONEY . 7 billion CARDINAL on the back of those very high prices as I mentioned earlier We think carefully about how we allocate our capital our cash so we have a range of capital projects that we're focused on the blast furnace reline and a new metal coating line in We made an acquisition in the US GPE just before the close of the financial year DATE for a coding business and of course the money that we spend on on the expansion of our North Star LOC facility our mini mill in North America LOC so we think carefully about Profile ORG of projects that we have internally this money that's required to be spent for us to continue to decarbonize our business and meet the ever increasing targets around greenhouse gas emissions and then we also think about the cash that we generate in terms of To shareholders in our board have enough confidence in in the business model and the outlook that we've announced ยข25 Final ORG dividend and also an up to 500 1 million dollars MONEY buyback so we're very mindful of what's happening in the market internal opportunities but also returns to shareholders Mark PERSON I know you don't have really a big sort of exposure to the Chinese NORP economy A general sort of rule but certainly what happens there affects certainly the industry. What received as far as the weakness in the economy? Where do you think that puts the outlook for the entire industry? Oh China GPE has AA significant
The weakness in the economy where do you think that puts the outlook for the entire industry? Oh China GPE has AA significant impact in terms of the Asian NORP markets in particular so we watch that very closely I think the signals that have come out of China GPE in the last few years DATE around their challenge to meet carp decarbonization reducing them out of ex Rather than bringing in high cost imports and then selling product is low cost exports I think that's been fundamentally structurally good for the steel industry in the Asian NORP region so we watch that data quite closely And you mentioned a lot about sustainable steel making to Mark PERSON and I wondered do you accept that when it comes to the long term that hydrogen will will basically replace Call eventually in the steel making process and how long is that gonna that transition going to take? This is an enormous challenge for the steel industry. This is not just a blue scope problem by any stretch of the imagination. This is a global steal industry problem. There's not technology that's currently technically or Revival that sees us in a position where we can decarbonize what we're incredibly optimistic about the opportunities that hydrogen provides but I'm also mindful and I I don't wanna sound like a naysayer I'm also mindful that there is just some time and a massive Man of investment that's gonna be required to get us to a position where we haven't ecosystem around hydrogen we have enough renewable energy we have the raw materials that are required for us to decarbonize our industry we're we're a hard to a bait industry there's not a technical solution that's available at this stage but we're Working very hard on it and it blue scope we've made a significant commitment both in terms of people resources and capital to head down that decarbonization path my view is I think we're at least 10 years DATE away from the hydrogen ecosystem being in a position where it can have a material impact on the steel industry. Mark just one of the other things too that's been hounding the industry not just yours pretty much virtually every industry out there it's just these supply constraints I would say supply chains apply constraints you know entered the energy In Europe LOC as far as inflationary pressures to your business. What are you seeing and what do you think persists? There's no doubt there's some inflation re pressures. We're seeing that in labor across our footprint we're seeing it in some consumables. We're seeing it in fright. Our businesses have been heavily disrupted over the last 12 months DATE with Restrictions ORG around employees not coming to work. Our customers, restrictions around their people being in isolation. So, there's no doubt Send an impact in our business from an inflation reprospective over the last 12 months DATE . The supply chains have remained very tight. That's manifested itself in better pricing. So some of that inflation reimpact has been offset by our ability to Us GPE that through in price increases. Mark great to talking to you. Thanks so much for joining us Martha PERSON . Blue Scope Steels PERSON , CEO. We got plenty more head. This is Bloom The Indian city of Jamnigar WORK_OF_ART is a money making machine for Asia LOC 's richest man, Mukesh Ambani PERSON . His company reliance has the world's biggest oil refinery complex here in the city. Jamnagar ORG is also wearing is making his newest
His company reliance has the world's biggest oil refinery complex here in the city. Jamniga is also where Ambani PERSON is making his newest bet A 10 1 billion dollars MONEY investment in green energy. His ambition is closely aligned with the Indian NORP government's plan to reach net oh emissions by 2070 DATE . But Barney PERSON is not alone. India GPE 's second ORDINAL richest man Galta Madani PERSON has committed 20 1 billion dollars MONEY of investment over the next decade DATE . But India GPE 's massive dependencies on fossil fuels have some environmental applicants questioning the realism and sincerity of those green ambitions and those of its two CARDINAL biggest billionaires. Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving. Coverage starts August 25 DATE only on Bloomberg Delevation and Radio ORG . Alright, here's the trading day that we've had so far. I think this really sums it up for you. The, we started out week in China GPE , you had a rape cut, we went up, you had a missed, we went down, and this ongoing press conference of course Of the National Beers Statistics ORG . We'll get to that later on. She has your first ORDINAL word news. David thank you the world's largest fund managers including Black Rock LOC and State St are reportedly cutting pay and taking other steps to rain in costs The financial time says Black Rock LOC plans to postpone hiring for more senior roles while state streets pay an employee benefits dropped by 15% PERCENT last quarter DATE the plans come as customers with raw assets and stay on the sidelines in the mid market volatility Wells Fargo ORG is coming to shrink its vast mortgage empire which once chairing down one CARDINAL of every three CARDINAL US GPE home loans sources say the bank's leadership may begin the retreat by reviewing ties to outside mortgage firms they generated roughly one third CARDINAL of its 205 1 billion dollars MONEY in new home loans last year DATE The strategy shift follows changes in the executive branch and years DATE of costly regulatories with me. Following a sharp rally in recent weeks DATE According to a regulatory filing for soil system investment firm bolstered its stakes in Amazon ORG sales force and alphabet the fund also added a new 20 1 million dollars MONEY position in Tesla the billionaire for launch over the last one firm manage more than 28 1 billion dollars QUANTITY as of the start of 2020 DATE Alright Bonnie PERSON thank you so much let's take a look at what it comes to movers here this morning TIME as we talked about the website that were sent across Chinese NORP equities here's what we're looking when it comes to these SOEs as well after announcing on Friday DATE that they will be delisting from the US GPE the likes of Chalico GPE try to life side effect to China GPE as All falling this morning TIME more than two% ORG losses here at yes there is a sense that this is probably bad for sentiment day but in terms of turnover and some of these US GPE listed stocks not too not too big. Yeah virtually here already this part of the world right
I've always been a person who's just been attracted to hair. To see and think and theorize how I can manifest these visions that I have for braiding and how I can take something that Macy ORG might Line drawing in my mind and apply that to someone's scalp We are the only culture that has here that grows out of our head the way that it Anyone from the African NORP diaspora is born with this amazingly curly hair that can be shaped into a variety of different ways of expression I want black people to love themselves for how they naturally appear and also to appreciate the cultural practices such as writing that our ancestors have practice For centuries DATE . It's a great question. Great question. It's 11:29 AM TIME : in Tokyo GPE . Happy Monday DATE to our Japanese NORP markets heading to that lunch break as well. We did get those GDP numbers that came out early this morning TIME . It grows returning back to those pre-pandemic Day but it's the pace of it has been actually quite slow as well and it didn't miss forecast but nevertheless we see some decent gains on the day DATE here this morning TIME . Yeah I were all to back I mean use the word back there in terms of where the Nikki GPE is the topic is slightly behind but when you chart that on a year DATE today it's and you normalize it we're basically at the start of the year DATE so yeah we are now flat a little bit higher than the year DATE in the NK still slightly lower in on the topics but really indicative of the trend in this Performance you see against the other benchmark to see there on your screen send that takes us into this sort of day which will be seen from Japan GPE and also this week DATE ahead the month. Yeah we have inflation number Japan GPE coming out later on this week DATE as well in terms of what else we're watching out for beyond just Japan GPE and the data dump that we just got out of China GPE I certainly has been a It's gonna continue on here. That decision we have BSP ORG decision on Wednesday DATE and Thursday DATE as well all the jobs there but certainly I think fed minutes TIME is probably the most big in terms of event risk out there I skip to Sport news we got Money Quinn PERSON in New York GPE hey Bonnie PERSON hey Yvonne PERSON thank you water levels at a key way point on the wine river expected to study at an extremely low level this week DATE as a climate crisis adds to yours energy crunch many barges can transit Margaret Caleb which is West of Frankfort LOC . When the water level is about 40 cm QUANTITY or below. It's currently at about 35 cm QUANTITY . The Ryan PERSON is western Europe LOC . It's the most important river for transporting fuel and other goods. The chair of the US House Intelligence Committee ORG Adam Schiff PERSON says he hasn't seen any evidence that materials the FBI ORG seized from Donald Trump's PERSON home were properly decasified Trump ORG said Friday DATE that everything taken was declared or covered by executive undertone privilege chefs says that argument is Assessment of the seas records. Us capital police ORG say a man crashed his car into a barricade and fired it gone into the air several times before fadely shooting himself Police say the 29 year old man may have said fire to his own car and was being approached by officers when he shot himself it's still not clear why he chose to drive
Shooting himself. The 29 year old DATE man. May have said fire to his own car and was being approached by officers when he shot himself. It's still not clear why he chose to drive to the capital area. According to the police it doesn't appear the man was targeting any members of Congress ORG . Trivia GPE is reporting in from Wall St and beyond for Andrew Jane PERSON they can't call CEO Death at the age of 59 DATE was announced on Saturday DATE after he had a 5 year DATE battle with cancer. He has been credited with building joy to buying some investment, banking business, and turning the German NORP lender into a global trading powerhouse. Global news 24 hours TIME a day on air and on Bloomberg PERSON we take power boom within 2700 CARDINAL journalists and analysis and we're the 120 CARDINAL countries I'm Bonnie Quinn PERSON this is Bloomberg David Ronnie PERSON , thank you, some GDP numbers, and two CARDINAL Q numbers and just really adding, I guess Yvonne PERSON to this really been a bad set of numbers today DATE here. Also, a miss Hi, lad. Two and a half percent DATE the estimate was three CARDINAL . One. Obviously missing the median and not so much of course. Where you are on the bottom line but yeah, by the way, the set index is still close today DATE . So, let's not show that. But there we go. GDP numbers and little bit of strength. Well, weakness in the currency. One CARDINAL of the best performing currency stud this year DATE . Yup, it will continue to watch of course the China GPE story now that we are seeing more lines crossing here from the statistics bureau ORG pressor and they're they're basically saying And the services industry slowed in July DATE that's kind of an understatement right given the mist that we saw when it comes to retail sales employment pressure persists overall they're saying young people still under pressure when it comes to finding jobs as well those are the latest lines after what has been a ugly ugly set of numbers yes The the market was pretty optimistic about the the stimulus measures that the cuts that we saw from the PVOC and the MLF ORG but then again once that data dropped things differently are turning a little bit more to the red now let's bring in our executive editor for Asian NORP markets Paul Dobson Paul PERSON your take on on all things trying to hear today DATE first ORDINAL the data and then what we saw before that too Bit PERSON with the MLF ORG . Yeah, yeah, all looking pretty, pretty awful out there, right? Pretty bleak. I think it started on Friday DATE with landing days, it was such a big mess, so much worse than people were expecting and it just goes to show You know there's plenty of liquidity out there in the market. But unfortunately people aren't taking it. The people that you know kind of need the money that could use the money. Don't really want it. Don't really see any useful ways of of putting that cash to good use for the economy. And the people that can't get it all the developers for example you know but it's still shut out We seen today with the MLF ORG but you know kind of really getting that money flowing through the economy again is gonna take a lot more gonna take something that really gives people confidence back and when you've got the oh COVID policy when you've got the the crack down on the property market as well it's really hard to You know kind of the the the Going again and and to get people sort of Increasing the wheels of the economy. Yeah I I love how you put that Paul and let me just I guess take a bigger step back and you know we have the fed minutes coming out the data so far we just talked about Thailand GPE Japan GPE GDP we know what's happening with the US GPE we know where Europe LOC is and now China GPE 's telling us they're not recovering as quickly is this a reality check right now for asset allocators that the world is Gonna be as blissful These next few months DATE . Oh well I mean I think that we've seen it coming already in the US GPE right we've seen that slowdown we know that there's a lot of inventory stock we've we've seen the the big Is talking about you know kind of they're outlooking a lot of groomers so we already saw from the demand side that there is this slowdown coming they're starting to to hit China GPE starting to hit our part of the world you know the economy the the data has been looking strong so far probably because of the backlog that you Second half of the year and particularly fourth quarter when everything seems to be coming together in more of that kind of a crunch right so I I guess you know kind of maybe it's just that extent of how Slow ORG things are how how precarious they are inside China GPE is there is the thing that's new here? Hmm. Paul PERSON thank you Paul Dolphin PERSON .
Oh how percarious they are inside China GPE is there is the thing that's new here? Hmm. Paul PERSON thank you Paul Dolphin PERSON there are executive editor for Asian NORP markets just giving us just a flavor of just the pulse that we're seeing here across these markets certainly has been a volatile session in China GPE here today DATE let's check oil prices here in the meantime was obviously we've been talking about those Ramco NORP earnings that were certainly Quite quite optimistic here and traitors are basically trying to weigh a whole mix of bearish and bullish headlines taking a brand or just below 98 bucks MONEY here right now New York GPE crudes are just below 92 bucks there's a possibly Iran GPE could be putting oil back on the market as well as bringing zucchini and joining us for more so Sue PERSON walk us through what are some of the big drivers Of crude here now. Why it's been a real mix News. Even though oil did post games for the week One DATE of the big drivers are Ron PERSON said that it could accept the European Union ORG broker agreement on the nuclear issue if it receives certain guarantees so that Put more oil from around on the market. Big Also a big topic that could ease the pace of the Across the board impact the options that we're seeing right now are are very interesting in terms of what that could mean going forward very quickly with dropping to the Bloomberg PERSON because another This is a chart of inflation which is that white line on top and blue which is gasoline which $ Four MONEY at the retail level for the first ORDINAL time since March DATE last Secretary said US GPE gas prices should call further and this is offering actually political relief for the Biden PERSON White House which has been pushing to get Energy prices at least gasoline price is lower. Commodities in 2 years DATE which indic Long term professionals that I've spoken to and others say it's very difficult to call the direction of oil going forward from here given that mix of And from Aramco Sue did we hear anything from the company as far as their plans and topics for example because I would imagine what they do affects I guess part of the narrative here. Yeah, Thinking of expanding their seeing demand for the next decade DATE growing which is contrary to some of the project One 1 billion MONEY in profit broke all of their own records in fact it's Biggest quarterly DATE profit for any publicly traded company in the world at this point are free cash flows by some 53% PERCENT using the windfall as mentioned to pay down debt and to expand other Capacity. Most of the world is moving Hey Even though there's downward economic pressure on short-term Global forecast and as you know we've seen other oil companies like Axon ORG like shell post record second quarter ORG earnings nothing on the level Perhaps in the rear view mirror for a lot of these big oil companies for the reasons we just mentioned the And West Texas LOC interme So thanks for getting there. We're checking the bot on the back of those GDP numbers that did disappoint quite a bit and we are seeing some downs that would comes to the currency here this morning TIME . Just weakening about half CARDINAL of one% ORG or more. I think we're hovering on the 35 DATE , 51 DATE , or 49 DATE now. Levels here for the type of
I think it's one of the best Currencies ORG out there in Asia LOC obviously the tourism factor a lot of people returning to Thailand GPE that's helping the currency as well you have a narrowing current account deficit those those drop in oil prices as you mentioned certainly helping the currency as well so wondering if it's just a blip or not today Dave PERSON we'll Yeah, I mean, it's certainly excuse to take some money off the table, right? Given that this has been bit up substantially this month DATE . In fact, Thailand GPE will be part of our next conversation here and we'll we'll dig deeper into Southeast Asia LOC and private capital and really where a lot of these funds are deploying their money with global private capital association CEO Ka Bros ORG will be joining us of course to talk us through Activity remains strong where they're putting their money on is a big place. It's also a bunch of many places so we'll look at the new ones here. That's up next. This is Bloomberg PERSON . When US GPE inflation numbers are released. Terminal speed. Analysis. Over the past few weeks DATE has made it clear. It wants to go higher. It got a little spooked by the idea that due political potentials are rising. Hey it's the time of the week DATE where we focusing on Yeah Southeast Asia LOC here's a look at markets there it has been a challenging time of course in Fundraising does remain strong though Yvonne PERSON for the region. Yeah I certainly hasn't when it comes to Southeast Asia LOC I just take a look at the numbers that global private capital association has been crunching up and basically we have seen investment in Southeast Asia LOC rise 39% PERCENT in the first half of this year DATE and that's one of the highest Or your figures second only to Latin America LOC on the flip side that you do see China GPE as well you're on your change down close to 40% PERCENT this is all this and more okay Ambrose CEO and board member of the global private capital association Kate PERSON thanks so much for joining us why do you think private capital can actually thrive in Southeast Asia LOC what's really driving these Well, I mean, I just sharpened the the starting place. There's extraordinary global liquidity in the world today DATE . I mean, they're over one. 30 billion was raised for private capital strategies around the world and in 2021 DATE . It's a lot of money to put to work and Southeast Asia LOC has been rising as a destination Global investors big private equity firms opening offices and expanding their presence in Southeast Asia LOC as well as a thriving local ecosystem driven by Singapore GPE 's You know Paul PERSON is and and push to become a global financial center and and roll the government with a number of programs there. So so we definitely seen rising interest as you indicated in the numbers.
And push to become a global financial center and and roll the government with a number of programs there. So so we definitely seen rising interest as you indicated in the numbers It's been interesting to see what's happening in 2022 DATE with a slow down in China GPE Some of the more developed markets for venture and and private equity but actually a very significant increase in Southeast Asia LOC that and that period You mentioned about maybe some more funds turning to Southeast Asia LOC . I wonder are we seeing more of these kind of private market funds? Really kind of leaning towards this region or or do you think it's just Investors that are just basically writing bigger checks now. Don't y'all are industries definitely built around you know both big global players, general Atlantic GPE , KKR ORG , Warper Pinkus PERSON , we've all had offices in Singapore GPE for some time and it been extending investments Singapore GPE in June DATE and met with about a half a dozen CARDINAL new venture managers that have been active over the course the last couple of years DATE and it almost all been seat Bye. Then you've got to run GIC ORG also is an active industrial second ORDINAL particular and seating local fund and really building the local ecosystem Disability that Singapore GPE provides in terms of that you know that the stability that political system is something that's very attractive to global investors they're looking for certain DM markets there was a period of time China GPE had a certain kind of certainty that seemed to work and was obviously an enormous market. I think today DATE by comparison what you see in Singapore GPE is is very attractive to global investors setting up offices there. We actually opened our own office and Singapore GPE and have a Before there because we noticed that almost half CARDINAL of our member firms had offices in Singapore GPE . Now okay talk to us then about we had a guest last week DATE and you know we were talking about private market valuations and well at least in in their view last week DATE that we haven't seen or yet to see our we don't know if it's gonna come down around as far as valuation so What are you seeing as far as you and I guess some of your members Yeah. Arguably quite inflated there was a lot of room to take some hot air out of out of those valuations Typically in markets like Asia LOC and in in Margaret PERSON 's like India GPE or Latin America LOC less of China Southeast Asia LOC they're just much more it's much more difficult or start up to raise capital in the first ORDINAL place that's much more difficult there As much money available and so evaluations were typically not as outside to begin with. Typically, entrepreneurs and adventure space have to do more with less. They are not used to having access to you know, these enormous rounds with really high valuations and so there's just a greater discipline. They're not so much. I'm Listing now Earlier stage startups that have a really attractive growth rejectory over the course of the next 510 DATE , 20 Now, kid, I wanna bring in the China GPE part to the equation, not so much to look at. China GPE , but certainly given the weakness in the economy there and the recovery obviously that's, you know, taking a little bit more time than expected How much do you think Of the weakness in China GPE is actually benefited You know just interested in the tension and just general focus on Southeast Asia LOC . Well, of course, so much of the money that is going into Southeast Asia LOC actually comes from China GPE and the first ORDINAL place, ยข10 are Other Big Chinese NORP corporate tech companies were already expanding into Southeast Asia LOC and participating around investment rounds three, 4 years ago DATE . So, the Chinese NORP money has been very relevant in that in that part of the world. That said, Now, there is this concern particularly from US GPE institutional investors. I think there is
And very relevant in that in that part of the world. That said, Now there is this concern particularly from US GPE institutional investors. I think there is a concern around China GPE . There's no question that there is at best that's called a pause on committing new capital to only the best Chinese NORP managers only the safest hands are gonna be trusted today DATE for for investing into China GPE and so there's an India GPE has been a big benefactor of that trend. We definitely seems significant towards towards India GPE as one CARDINAL large economy where the young demographics over one 1 billion QUANTITY population because scales are so important for our industry but Southeast Asia LOC has also really been benefiting that as well with again a Chinese NORP money going in. Again, I was saying, I was in Singapore GPE in June DATE and the number of individual high network, individuals, Chinese NORP family offices, Chinese NORP corporates, and Chinese NORP funds expanding into Southeast Asia LOC was really dramatic. I just mentioned this last piece Sequoia ORG raised an 850 1 billion MONEY Southeast Asia Fund just earlier this year DATE drove a record two. 6 billion for for fundraising for Southeast Asian NORP the first half of this year DATE and and that was you know again a vote on a team basically coming out of China GPE expanding it to Southeast Asian NORP perhaps square Okay, thanks so much for your insights. Great research there, Kate Ambrose PERSON from the Google Product Capital Association ORG . We got plenty more ahead. This is Bloom NORP When US GPE jobs numbers are released Power pivot. Not with numbers like hey Push PERSON back. Wrong. We've had sort of a shift in are we in some sort of People are talking about that all day DATE yesterday DATE . Alright here your FX ORG movers here today DATE a dollar bit firmer here this morning TIME we are still seeing some strike across the Japanese NORP currency though 133 for dollar yen MONEY and the Aussie seeing a bit of downside here the Thai NORP bot certainly is a story today DATE given the weakness we've seen also Hey Yvonne PERSON thank you bluescope steel has report Line full of profit of one CARDINAL . 9 billion US dollars MONEY even the average analyst estimate revenue of 13 CARDINAL and a half one 1 billion CARDINAL was up 48% PERCENT on the year Luscope PERSON saw continued strong demand for steel products despite recent volatility the board approved of my back increase of up to 250 CARDINAL Over the next 12 months DATE . So your uncle was supposed to the biggest quarterly DATE popular that I need us to company anywhere net income rose to $ 48 MONEY . 4 billion CARDINAL in the second quarter DATE of from 25 and a half DATE one 1 billion a year earlier DATE see you I'm in Nassau GPE says the company expects oil demand to continue
Come rose to $ 48 MONEY . 4 billion CARDINAL in the second quarter of DATE 25 and a half DATE one 1 billion a year earlier DATE . The company expects oil demand to continue growing for the rest of the decade DATE . Hi cool prices and production. Chinese NORP developer a long four CARDINAL group who said to be receiving a 447 1 million dollars MONEY syndicated loan which would potentially alleviate market concern about its liquidity. That's always says the company has reached an agreement to sign a contract for the loan with state owned and foreign banks as early as this week DATE and there's your latest Bloomberg PERSON business last headlines. Yeah speaking of long four CARDINAL we have been longing for any tangible and obvious signs of a turn around in this Chinese NORP economy and certainly we were hoping that this data was data said was it Yvonne PERSON and no we didn't really get it and certainly markets are reacting to all this data and also what the PBOC did Yeah, it's interesting, right? We were thinking that there was gonna be a rebalance or a look a little bit better but then again, yeah, as Helen Chow LOC did mention from Bank of America ORG , that 10 CARDINAL basis point policy cut. Just showing that they care but does it really do much Boosting household consumption landing the light here unlikely it seems but certainly the bad news here adding to a lot more of the headlines that we're seeing across these markets see aside 300 CARDINAL still in the red the rest of the region though still looking pretty good here you see that okay up some one% Dave Yeah PERSON and all ahead of some key opens I think Thailand GPE opens up the next hour TIME I think India GPE is closed it's a GDP numbers out there when you wanna pay attention to is that rally in the Chinese NORP bod markets ages up a quarter one% today Hey, guys. Is the chance of humankind to really understand itself How much of that is true how confident did you actually overachieve did you you know back then realize that we would be using AI in many different jobs was it slower or faster than you thought at the time Think if I had a But I would have predicted steady linear increase over time but instead the field had Trajectory to this day we still know very little about how the brain works but this machines are getting ever more powerful I feel in some sense we did end up learning Then now we can rule out many many things because AI or machine learning has Key aspects of human intelligence. Is it possible the industries in an hour TIME ?
Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. To prevent that but yes. Has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semi-conductor industry overall and estimate are a one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there Gonna be some blitz and turns on the way and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that need. Welcome to the world of decentralized finance Bloomberg PERSON 's covering all things crypto but people the transactions and the technology Bloomberg PERSON crypto Tuesdays DATE It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse It's almost 11 AM in six CARDINAL point Shanghai GPE . Welcome to Bloomberg Market Asia LOC . I'm Hus Linda PERSON . I'm in. And I mean if I met in Hong Kong GPE here are top stories trying to recovery unexpectedly weakening in July DATE as fresh COVID outbreaks way on consumer and business spending the gloomy picture prompting the PBOC to deliver a surprise interest rate cut Is 2022 DATE losses plus Saudi Aramco ORG post the biggest quarterly DATE adjustive profit any listed company driven by higher group prices and production. Well, talk about volatility vaughn especially for Chinese NORP stocks on the back of that data, dumb, disappointing, especially for retail sales that backs the question. How will it look for the Chinese NORP economy in the second half of the year DATE ? It's gonna be tough. That also explains why we saw the moves on the PBOC Cutting the 1 year DATE MLF ORG also that 7 day DATE rivers repo rate possibly to help booze growth contain inflation take a look Turn it up 10th ORDINAL of one% ORG GDP back to pre COVID levels though and we're still less than anticipated. Come on space. We're keeping a track on crude oil, red crude, currently down about one% ORG . Of course, that demand from China GPE will play into the mix there and in the barn market, we have heels falling This one in time. Yeah Chinese 10 year EVENT yields as you see there with that bright green find some six CARDINAL basis points and more really goes to show where this whole slowdown story people are starting to pricing here this mackerel reality that we're seeing that perhaps this Chinese NORP recovery is gonna be pretty pretty choppy given what we saw with that July DATE Did I take a look when it comes to Thailand GPE though that just opening up that market just slightly lower we did get those miss when it comes to those GDP figures four CARDINAL Thailand GPE a Thai NORP bot is weakening on the back of that data but nevertheless it is still one of the best performing regional currencies here the Thai NORP bot given what we've been seeing when it comes to tourism there narrowing the deficit Current account deficit falling oil prices. So, the Thai NORP bot maybe what people just putting some profits off the table at least for now. Indian NORP markets are closed if the future's those punching a bit higher though and the rest of MSAP GPE were slightly higher here with a quarter
Just playing some profits off the table at least for now. Indian NORP markets are closed. They've the futures those punching a bit higher though and the rest of MSAP GPE were slightly higher here with of course Hong Kong GPE , China GPE , the exception though, and it's because of this. This data as Anza ORG call it alarming. If you see how retail sales played out, two CARDINAL . Seven% Well we are expecting close to five% gains when it comes to consumption stories. Basically across the board. This was a miss. Let's bring in our chief with Asia LOC correspondence even angle. In Hong Kong GPE with How markets are really digesting this news David and it's Steve PERSON I should say end this data. Yeah, absolutely. I mean, across the board, it did not look very pretty but we were kind of This because of the momentum in the Chinese NORP economy was expected to kind of peter off a bit after that pent up demand really drove some June DATE numbers and also some export managers at some companies across China GPE that News had surveyed had kinda indicated that export demand I was starting to Peter off a bit so we didn't expect it quite to be so bad on the retail sales front that shows domestic demand also is weak let's bring up the snapshot so we can see the actual number versus the estimate and use you can see most of Miss the estimates quite handly actually for the July DATE industrial production Seeing at three CARDINAL . Eight% ORG was the actual number. So factory output growth momentum. Starting to slow a bit. Retail sales quite a big miss at two CARDINAL . Seven%. We are expecting four CARDINAL . Nine CARDINAL . Fix acid urban investment. Also missed that's being bullied though by Stimulus ORG coming from the government in roads railways, bridges, and the like property investment, not surprising, continue to go weaker. Now, some of the other numbers that we've been getting through the the press conference and some of the other data coming from authorities in Beijing GPE that stood out to me. As we head up towards the party congress ORG coming this autumn unemployment rate is very important they like to keep unemployment nationwide at about five and a half percent CARDINAL or below it did come in below at five CARDINAL . Four% the caviato is new or or use between ages 16 to 20 CARDINAL A record high unemployment for youths. We have more than 10 CARDINAL . 7 million CARDINAL new students expected to enter the job market this summer DATE . That also is a record high but we're at 19 CARDINAL . Nine% youth Employment that's a concern for authorities Steve PERSON that rather alarming a data points possibly explain why the PBOC made the rate cuts today DATE on the back of credit data which is the lowest level 2017 DATE on the back of course of that very weak housing data as well so Not looking pretty at all for the second ORDINAL half Yeah none of the economists that serve it by boomberry expected the PBOC to do these rate cuts where we had the 7 day MLF ORG loan raid down cut by 10th ORDINAL of one% ORG also the 7 day DATE reverse Rate ORG cut down to two% ORG from two CARDINAL . One% maybe symbolic adjuster that the authorities do realize they need to stimulate growth because it's a liquidity trap in the making because there's tons of liquidity in the banks but nobody That's what we saw aggregate financing nobody wants to borrow I just say they want to land but aggregate financing and new loans was down but we do have Helen Chow LOC from Bank of America ORG have this to say about the rate cuts. Hey surprise interest record this morning TIME seems to be suggesting policy makers are concerned and they want to make a gesture 10 CARDINAL basis points is almost like not a big deal right it's a small gesture but at least it shows that they care Right so some dire words to from Helen Shaw PERSON Steve I I wonder then you know given what we've been seeing in the consumption story and then what we're seeing in High Naan this is a big tourist place for many sort of local Chinese NORP travelers as well not that they're going through some sort of Good picture when it comes to the consumption recovery there either. No that's right I mean the high non there's a province contributes about oh. Six% to nationwide GDP and oh. Five% of retail sales by
Very there. No, that's right. I mean, there's a province contributes about oh. Six% to nationwide GDP and oh. Five% of retail sales by by comparison of obviously, it's not a Shanghai GPE , it's not a Beijing GPE , it's not Urban area but it does point towards the services sector and in travel and if the risks are seen a quite great in places like Hainon more people will perhaps not travel I mean there's been a lot of anger in high not about being essentially locked up in their hotel For up to a couple of weeks DATE . It started to dissipate right now. But again, we've already seen some protests in the property sector. So, if you have a further Upset in property and in the services sector tied to tourism you're gonna have a further dampening effect so we do need to watch what's happening in Highland GPE people go there to have fun and relax not to be surrounded by hazmat suit And to be confined to their rooms. Steven Ango PERSON , chief North Asia LOC , correspondent, thank you so much for that. Let's get M Science perspective bringing Oxford NORP economics, lead Asia LOC , economist, Sean Fana PERSON , Sean PERSON , good to have you with us Kicked off the third quarter DATE thinking China GPE is off to a better second ORDINAL half CARDINAL yet today DATE 's date I really alarming and we are real sales at two CARDINAL point what two CARDINAL point In real time that's a negative Probably the main concern I have looking at that data is exactly We didn't expect that we'd suddenly see root ourselves you know accelerate sharply we do think that there's gonna be ongoing caution particularly given that we have this dynamic oh COVID so we're saying you know constant testing and like but we didn't think we would be quite as weak as what we're having which is Put a lot of downside risks to the recovery for the second ORDINAL half. How much does that change narrative for Chinese NORP growth right now your own projection for the year DATE is three CARDINAL . Two% already the three CARDINAL number there are you like it to revise a downwards I think I mean we do we've always thought that it's gonna be fairly bump I think I'd share I should make that clear that it is gonna be sort of bumpy growth over the next second half DATE but given these today DATE 's figures I think there's you know a high risk that we're gonna actually have to slice more after we've had that obviously dismal queue two CARDINAL outcome. Sean I have to wonder that what is going to be that silver bullet that the the circuit breaker that this economy needs right now and how can the police makers actually communicate in the way that it doesn't show it's an abrupt policy move? Yeah I'm in that that's exactly it I'm in the uncertainty and just when they're actually going to you know finish or actually change the wording and you know the mass testing around oh That's the key risk. So, you know, we're expecting it is gonna happen in, you know, beginning of next year DATE , first half of next year. But if we keep seeing these sort of kind of lockdowns, not not to the same degrees what we saw was Shanghai GPE . It definitely means that you know, sentiments gonna Name very weak. It becomes a self-sufficient policy. Infrastructure can't, you know, it's gonna do some of the heavy lifting. It will push up growth but it's not, it's gonna be a very lopsided recovery until we can remove this. What about the export boom that we've seen in China GPE that really was probably one CARDINAL of the silver linings and all this is that starting to fade now that we are starting to see the US GPE and in the EU ORG and and growth is deterring there. Yeah I mean absolutely I'm in the exports manufacturing was a key driver behind growth for China GPE except for those sort of tailwinds are fading you know we've got the risks of the recession in the euro zone in the US GPE we've also got Change of advanced economy spending, moving from goods towards services. So these are all external headwinds facing the Chinese NORP economy. So we don't see that it being significant driver of growth going over the next 18 months DATE . The extent of the slowdown in China GPE 's economy that moved by the PBOC today pretty minimal. Yes, absolutely. It's also tough Point NORP in time I mean they've got a couple of sort of other things they're gonna face one they don't want to be seeing you know big deep appreciation or pressure or capital outflows so on their currency the other thing is is that you know you're not getting the demand so consumers you know they're avoiding you know increasing sort of near mortgages and they're like Sentiments probably gonna remain sort of fairly weak outside of those sort of key strategic sectors and climate change so you know it's it's not gonna be providing a significant boost at this point. Yo Azian Sean PERSON has always been kind of that.
So you know it's it's not gonna be providing a significant boost at this point. Yo Ozzy PERSON on Sean has always been kind of that buffer I feel like we've been talking about all this year can this sort of economic momentum continue when when the rest of the world seems to be slowing down now For the industrial production yeah I've been already think that for IVI Southeast Asia Oh LOC , sorry. Sorry, I do apologize. For Southeast Asia LOC . I mean, Southeast Asia LOC does actually have a couple of buffers. So it has been very much export driven. But positively and we've seen this with quite a number of the Q two CARDINAL figures that have come out. Is that we're starting That recovery in terms of domestic demand on the consumption side and you're coming through on the private private sector as well. It's really because we've had those reduction and restrictions with tourism picking up. So, we should actually still be out of, you know, this Change in growth from services from manufacturing to services should provide some support going forward and I've got Sean PERSON it is a big big week DATE for Montre PERSON policy here in Asia LOC RBNZ Philippine it's on a bank Are we expecting 50 from RBNZ ORG and what 15 CARDINAL from the Philippines Bank ORG ? We're actually looking at 50 DATE for both of those. So we're probably gonna get 50 CARDINAL from the New Zealand GPE but I'm in obviously starting to see quite a sort of you know sort of recessionary risk there. So we're would be looking for some sort of more dogish tones out of the statement and the like for the Philippines GPE I think it's quite Christine because if before we had the Q two CARDINAL figures last week DATE I think people were pretty comfortable with a 50 CARDINAL basis rate hike give them the inflation obviously though if we actually look a little bit deeper into those Q two CARDINAL figures you actually saw the consumers are really getting hurt by the home inflation to us that means that they That you probably continue inflation remains a near priority to you know prevent the household budgets being so constrained that we do expect another 50 CARDINAL basis points hikes this week DATE . Oh having to keep up with the fad it is expected to remain aggressive. Economics. Hey Hey how's Linda PERSON ? We'll start with a sign up and China GPE life. They're among group Chinese NORP companies set to deal list from US GPE exchanges five CARDINAL or China GPE 's largest state owned firms in fact. Japan GPE 's economy meanwhile recovered to its pre pandemic size in the second quarter DATE with growth picking up after COVID card Relaxed. Economic output led the growth First ORDINAL quarter GDP was revised to an expansion from the prior contraction. Landed in Taiwan GPE on Sunday DATE for a 2 day DATE visit. They are meeting with Taiwanese NORP President saying when and other lawmakers According to the American Institute ORG in Taiwan GPE discussions include global supply chains and climate change. The trip risks keeping tensions with China GPE high after house speaker Nancy Pelosi's PERSON recent visit to the region. While Anna was saying earlier sign up back in China GPE life insurance among the group of Chinese NORP giants to exit from US GPE exchanges five as I was saying of China GPE 's largest state on firms announced their intention to do this Friday DATE as the start over all its continues about 200 CARDINAL Chinese NORP firms are facing possible deal listing in the US GPE As soon as 2024 CARDINAL unless Beijing GPE grants access to American NORP auditors. Billionaire investor at Rockish has died. He was 62 DATE . He was dubbed India GPE 's war in Buffett PERSON due to his reputation for a long term equity investing and was among the most influential market voices in the nation. Started my shares with a loan of $ 100 MONEY and 1985 DATE and along the way invested in some of India GPE 's most prominent names including its biggest jeweler, Titan GPE , and Airline PERSON startup a Casa Air. Global news 24 Day DATE on air and I'll remember a quick take power burn within more than 2700 CARDINAL journalists and listen more than 120 CARDINAL countries. I'm Bonnie Quin PERSON this is Bloomberg PERSON . Yvonne PERSON . We'll still have this hour TIME Saudi Aramco ORG expects oil demand to grow for the rest of the decade DATE as profit soaring insights from San Francisco Bernstein which is seeing risks in China GPE 's continued COVID curves and sanctions against Russia GPE but up next as well a close look at the currency markets following the PBOC surprise rate Economic data this is Bloomberg PERSON
Can I make data this is Bloomberg PERSON While Tesla ORG 's in the like make for good headlines the reality is that even if every car on the roads today DATE when electric it wouldn't be enough to curb global emissions to avoid catastrophic climate change. Greenhouse gas emissions from transportation account for about 29% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? Buildings across America Instead of burning oil and gas to give us the energy and electricity we need we wanna do 100% PERCENT clean energy Vehicle is all electric with no fossil fuels. We wanna do that with our buildings and if we can do it in one CARDINAL building, we can do it in all building And if we do it in all buildings we'll reduce 30% PERCENT of US GPE greenhouse gas emissions. Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving Welcome back to market markets Asia LOC after China GPE 's And focus will it move Again chances are it will despite Race rate 75 CARDINAL basis points and of course rate decisions Out of Philippines GPE and Australian NORP jobs that are coming out on Thursday DATE followed by Japan GPE 's inflation on Friday DATE Vaughn ORG is gonna be a packed pack Yeah, I think the 5 minutes TIME are probably gonna be the biggest one in terms of market moving. The data dumps certainly today DATE out of China GPE is one to watch out for here today DATE on the back of what we saw. The PBOC with that surprise rate cut for that 1 year DATE policy loans. Let's bring in our boomerang intelligence FX ORG and rates, analyst, Steven Chu PERSON , and Saying LOC that China GPE shooting up. Setting lower this was quite a bit of surprise to the market. Yeah I mean like let's talk about the rake itself like we do expect record to happen in the second half of the year now of course we do not expect it to happen this month DATE without China GPE I wanna observe a little Longer. Maybe preferably to see what the fat does next. So, probably September DATE FOMC could be a good window for the PBOC to observe. So, the record today DATE like certainly is probably earlier than we expected. Now, Mark PERSON here could cite the weaker credit data Weekend DATE , the week DATE we're real activity data today DATE . But we think that
The record today DATE like certainly is probably earlier than we expected. Now Market could cite the weaker credit data over the weekend DATE . The weaker real activity data today DATE . But we think that actually that's the trend has been happening over the last few So it's probably not really just about the data but it's it's also because of like looking forward like China GPE has really concerned that the economy will be facing more pressure especially ahead of the party congress ORG in November DATE so they're gonna have to do something So that's why we get the rate cut today DATE Steven PERSON we have the Yuan currently down about four tenths CARDINAL of one person what does it mean for the outlook to the current state? Now interestingly normally the end doesn't react a lot to policy monetary policy decision but then just so happen right now that you are under pressure even before the rate get now we know that you're intense job Suddenly week DATE in the third quarter the year DATE because of David and Alflow and of course over the last 1 or 2 week DATE we have uncertainties over the cause strat even though now that's not a major watch from the market it's still a big risk for the market so so mark it would be concerned about that's gonna block further especially we saw more US GPE Officials visiting Taiwan GPE . So that's gonna be one CARDINAL risk premium that's priced in the event. No hands now with the record going on being unexpected. The UN ORG will be under pressure especially we'll under perform somewhat the Asian NORP currencies for now. What about her bonds though? I think just last week we were talking about this quarterly DATE monetary report from the PBOC. They were talking a little bit more hawkish and and worried about structural inflation. So people were probably a bit more cautious of bonds now. And then now you're seeing yields heading by six CARDINAL spaces points I wonder is this is just a short squeeze how long could it last? Yeah I'm very interested that you mentioned about the coil report which state explicitly that they don't wanna splash the market with money they wanna preserve wanna trip plus a room and that's also the stance and in the recent rhetoric in order statements in official speeches so hence nobody expect them to cut this But it happens. Meaning that the data could be even more uglier than what we see right now. So going forward more pressure. So for rates it has to respond. Now words for the level. We think that you may still drop lower. Let's talk about the 10 year DATE CD videos. Which usually evolve around the 1 year DATE MLF ORG . So right now we have 10 CARDINAL pieces on lower for when you MOF ORG at 75 DATE but for 10 years DATE we're at 268 CARDINAL so of course like in the near term we're gonna see even more lower lower space for the 10 year DATE CGBO ORG but whether it can really drop persistently lower depends on where the China GPE cuts again. And we think that China GPE like we wanna observe to see how the latest cut would do to the economy before coming again cuz otherwise it will anchor market expectation that it's you wanna cut very aggressively going forward and that's gonna hurt both the currents in also market expectations Thank you so much for that plenty more ahead as we Disappointing GPE data This is bloom bag. The Indian NORP city of Jamnigar is a money making machine for Asia LOC 's richest man Mukesh Ambani PERSON . His company reliance has the world's biggest oil refinery complex here in the city. Jamnagar ORG is also wearing bunny is making his newest bet A 10 1 billion dollars MONEY investment in green energy. His ambition is closely aligned with the Indian NORP government's plan to reach net oh emissions by 2070 DATE . But.
Leon dollar investment in green energy. His ambition is closely aligned with the Indian NORP government's plan to reach net oh emissions by 2070 DATE . But Barney PERSON is not alone. India GPE 's second ORDINAL richest man galta madani PERSON has committed 20 1 billion dollars MONEY of investment over the next decade DATE . But India GPE 's massive dependencies on fossil fuels have some environmental applicants questioning the realism answerity of those green ambitions and those of its two CARDINAL biggest billionaires. Why did the biggest names in business choose Bloomberg PERSON ? She's a great question. Great question. Great question. Let's do a quick check of the latest business flash headlines Chinese NORP developer long for group is set to be receiving a 447 1 million dollars MONEY Liquidity Is reach an agreement to sign a contract for the loan with state owned and foreign banks as early as this week Postpone LOC hiring for more senior roles while State ORG Street's pay and employee benefits drop by 15% PERCENT last quarter DATE the plans come as customers with draw assets and stay on the sideline Empire They generated roughly one third CARDINAL of its 205 1 billion dollars MONEY in new home loans last year DATE the strategy shift follows changes in the executive rings and years DATE of costly regulatories scrutiny Sarah PERSON 's phone management has increased his holding so big tax stocks falling a shop rally in recent weeks DATE according to regular filing judges invest Alphabet ORG also added a new 20 1 million dollars MONEY position in Tesla Landropies Start ORG up 2022 DATE . Alright, turn some movers here. We're watching some of these US GPE listed Chinese NORP stocks in particular, the SUEs, now start Friday DATE that they will be deal listing from the US GPE and these are some of the biggest drives that we are seeing on the HSI here this morning TIME . The likes of Chalico GPE , Petro GPE , China GPE , Cydopec GPE , China GPE , life as well, down more than two% ORG or more For some of these stocks as well. A lot of questions of what will come next. What other companies might follow them as well. In terms of movers here or watching the likes of Orient LOC overseas as a downgrade from HSBC ORG , also top gloss, some of these glove makers continue to see some downfall here today DATE . This is Bloomberg PERSON . Watch Bloomberg PERSON surveillance early edition for the news you need when you need it.
Anna Edwards PERSON in London GPE . Australia Central Bank ORG . Can it sustain it's normal at a time when everybody else is facing a very different reality Be ahead of the game. 11:29 AM TIME : in Shanghai GPE take a Chinese NORP market heading into that lunch break right now and certainly we will need a bit of a break here just to digest all we see in the last few hours TIME or so everything from rate cuts to pretty bad data that came out for July DATE activity data while we see retail sales Across the board. We've been going kind of between games and losses here throughout the course of this year DATE as we continue to look at what this means with a third quarter DATE , this whole recovery Which has been choppy to say the least. So, you are seeing when it comes to Shanghai GPE today DATE . Under performing the rest of the region. Still doing pretty decently well though the track next up. So, one% ORG but take a dollar China GPE , 675 91 DATE has. Of course, Chinese NORP stocks in a tailspin. We have Nikki GPE By the way erasing all losses for the year DATE it's GDP back to pre COVID levels even though Lower GPE than expected. Of course, we're tracking the yen, gaining versus the USD renewed speculation. The BOJ ORG may tweak its policy dollar Put the paycheck where we are in terms of commodities, oil, and particular The recent rally in oil prices help sodium Globally $ 48 MONEY . 4 billion Midi's MONEY correspondent Simon Foxman PERSON 's joins us now it was a blockbuster quarter DATE . Yeah really hard to look past that enormous number that was also 90% PERCENT rise year DATE on year DATE in second quarter DATE profits the company just seeing blockbuster returns no it's not Surprising and given we had oil prices at $ 112 MONEY per barrel on average between April and June DATE and given where oils trading today DATE has not necessarily likely to continue into the next quarter DATE but from an investor The biggest question was likely the dividend and we saw shares fall in Saudi NORP trading yesterday DATE . Remember the Saudi NORP market is open on Sunday DATE . Part of this may had may have had to do with the fact that Aramco did not follow the footsteps of other oil companies around the And actually boosted dividend on a percentage basis that dividend ruled therefore remains pretty low against its peers but the Iramco ORG message has always been we get that oil is a cyclical market and therefore we're gonna kinda maintain this fiscal discipline even though we could pay out more to And meanwhile Simon PERSON we are seeing oil prices extend losses in Asia LOC trading so what really are the key drivers moving forward now? Yeah I mean it's certainly the question mark here about demand for the oil market and just the kind of impact that we are seeing from a slow reopening in China GPE you know there are these ongoing question mark
Mark here about demand for the oil market and just the kind of impact that we are seeing from a slow reopening in China GPE . You know, there are these ongoing questions marks about whether or not we Iranian NORP crude back into the market there were some incremental headlines I don't know if we should give them too much credence that there may be some progress on a return to the nuclear deal and therefore we get that oil back into the market Bearish. I think in the long term however there's always this concern about the excess capacity that Saudi Arabia GPE has certainly a ramco didn't really essuage those Yesterday DATE talking about how 12 1 million barrels QUANTITY per day. It's really the limit that Saudi Arabia GPE can produce on a comfortable basis For there are long term plans to kind of ramp up that production and so when you're looking in the long-term, you know, couple months out, the Saudi Arabia GPE clearly limited in the amount it can even contribute to the markets and that's something that may ultimately have some upward pressure if we continue Reduced supply from Russia GPE and the like. It's about thank you Simon Foxman PERSON there are many to a correspondent with the latest on a ram call let's bring a Neil PERSON beverage now senior energy analyst at San Francisco Bernstein ORG and Neil PERSON you take a little more oil prices are we basically have erase all the gains that we have seen since the Russian NORP invasion of Ukraine GPE do you think prices have reached Lure. I think they will reach a floor somewhere around $90 MONEY a barrel what we've seen is the market move back into over supply inventories are building again we've seen that on the back of you know slightly weaker Russian NORP oil production holding up I think far better than anyone expected and also the releases from the strategic patrollium reserves from a number of OECD ORG countries they're really led to this circles of crude on the market right now but what we think is going to happen is that surplus will continue through the Quarter but as we get towards the end of the year DATE into next year DATE I think it's likely we'll see deficits build again in the market and we'll see prices start to take higher again How much more outside are you than anticipating ill Well I think we're still gonna have a run $ 120 MONEY a barrel next year DATE I think as I said for the third quarter DATE we're probably gonna be somewhere around $90 MONEY a barrel eh you know in that range but I can see another one at 100 Doors are barrel next year DATE . I and remember I think the longer term aspects of this market is that you know we haven't seen their demand peak yet. We're still gonna have pretty good demand growth next year DATE . I think as we see increased travel particularly outside of China GPE . But we are witnessing you know under investment in the industry investment levels running Half CARDINAL of where they were in 2014 DATE and so that reluctance really to invest in long-term supply. You know, we'll lead to, you know, a time to markets ahead and and higher prices. I knew we're seeing a search in Nat Gas ORG prices how much are you expecting you know in terms of volumes from gas to oil this winter DATE as a result of Yeah I mean this is another very important part the market at the moment we're seeing L and G prices at $ 50 MONEY in MMB ORG to you gas prices in Europe LOC similar level so that's about $300 MONEY a barrel equivalent you know almost three CARDINAL times the price of crude so we're customer Can switch from natural gas you know into oil you know the incentives you know clearly there now it is limited you know it's song customers Able PERSON to switch into LPG or diesel. And you may be talking about half a one 1 million barrels QUANTITY . It's not an enormous number. Within the context of 100 1 million barrels QUANTITY a day market. But it's certainly is enough to help lift demand. Yeah I was gonna ask you about China GPE given the weekday that we just got you know they they've been pretty silent in the LNG ORG market. We haven't seen a resumption in demand. Given these COVID lockdowns as well. Are you seeing signs that maybe the Chinese NORP consumer can actually rebound substantially in the second half DATE ? No I don't I don't think in the short term the third quarter DATE there's any really encouraging signs on the data that we're seeing you know as you said it
Substantially the second ORDINAL half CARDINAL . No I don't I don't think in the short term the third quarter DATE there's any really encouraging signs on the data that we're seeing you know as you said it's really a shocking set of numbers on the energy front out of China GPE we're seeing you know negative Demand receiving oil demand that's effectively anemic no growth at all this year DATE and it's you know primarily as a result of the COVID policies you know that we're we're seeing you're trying to still in a persistent state of of lockdown You know, as we get into the fourth quarter DATE and hopefully into 2023 CARDINAL , we expect those pulses, you know, will start to lift forever, you know, which will trigger, I think, it'll resume growth in China GPE 's natural gas and oil demand. But we're still probably another quarter DATE away from that really starting to accelerate. Hmm so so where do you think Ella G PERSON and and Cole PRODUCT prices in Asia LOC are gonna go this winter can we see record high prices that new Well we're already seeing you know incredibly high prices you know as we come into this winter Challenges PERSON on the supply side. There's really no easy fixes. You know, there's not going to be any significant incremental LNG ORG supply that comes on the market. You know, between now and and, and, and really the end of the year DATE or even, you know, next year DATE . And so we're in this position, we're really Europe LOC is competing with Asia LOC for any Ball you're allergy core girls it won't is effectively as you were some game which is really pushing prices to these very high levels and what we're seeing in Asia LOC some customers saying look you know these prices are too high we're gonna swap out of gas into coal and brutally in the in the in the power And that's obviously leading to to higher you know cool prices is isn't is a knock on but I think you know we're facing a very very tight winter ahead with prices remaining very high. You took about a tide winter ahead Neil PERSON how long do you think the supply energy crime to well lost Well, thank you. It is dependent on a few things. You're, first ORDINAL of all, I think how events on the ground play out in in Russia GPE . I mean, we think the conflict will will will continue you know, for Time ORG . I think on the supply side you know we're not going to see a significant optic in terms of new LNG ORG supply probably until 2024 DATE or 2025 DATE . So I think you know we should expect high prices Not just through this winter DATE but also into 2023 CARDINAL with really you know the supply relief coming I think in 23 four 2025 DATE of course if the conflict ends then you know we could see things change but I think you know we're looking at a pretty tight gas It for the next 18 months DATE . Neil ORG , thanks so much for joining us. Neil Beverage PERSON , our San Francisco GPE Bernstein joining us from Hong Kong GPE . Coming up. Tell me about what cryptos in this rebound. It's really momentum from that cool and expected US GPE inflation data, your progress when it comes to Ethereum PERSON 's big upgrade that really is feeling a rally across crypto here with an update coming up This is Bloomberg PERSON . Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving
Only on Bloomberg GPE television and radio Bloomberg PERSON crypto Asia Headlines GPE . China GPE 's economic recovery unexpectedly weekend in July DATE has fresh COVID outbreaks across the country weighed on consumer and business spending. Industrial production rose three CARDINAL . Eight% ORG from a year ago DATE . Lower than June DATE 's game and below economist forecasts of a four CARDINAL . Three% GPE increase Retail sales grew at a slower than expected pace of two CARDINAL . Seven% while fixed as that investment also gained less than forecast Earlier China Central Bank ORG took the surprise step of cutting a key policy interest rate for the first ORDINAL time since January DATE as it rams up support for an economy struggling to recover the 1 year DATE MLF ORG lending rate was reduced to two and three quarters DATE per sand from 2:85% PERCENT . The PBOC also cut it 7 days DATE Liquidity from the Viking system. The chair of the US House Intelligence Committee ORG Adam Schiff PERSON says he hasn't seen any evidence that materials the FBI ORG seized from Donald Trump's PERSON home were properly decasified Trump ORG said Friday DATE that everything taken was decalified or covered by executive and attorney client privilege chefs says that argument is absurd and he's asked Intelligence ORG to provide a damage assessment of the seniors records. Tributes are pouring in from Wall St and beyond for Auntie Jane PERSON the count of eight CARDINAL oh president and former the way to bank co CEO Jane PERSON 's death the age of 59 DATE was announced on Saturday DATE after a 5 year DATE battley had with cancer it has been credited with building Doyban ORG 's investment banking business and turning the German NORP lender Global PERSON trading powerhouse. Global news 24 hours TIME a day on air and I'll remember a quick take power down more than 2700 CARDINAL journalists and analysts more than 120 CARDINAL countries in Bonnie Quinn PERSON this is Bloomberg Let's PERSON send a cryptocurrency crypto prices are showing signs of recovery and big money investors are again batting bake on digital currencys let's bring in Bloom Banks PERSON join out 2000 DATE how convincing is this rally crypto winter DATE no more. Well kind of has Linda Crypto PERSON is such a momentum asset and it is it encouraging for bulls the very least that it's down it's off of those lows around 19 1000 back up at 25 1000 CARDINAL some people have said there will be a lot of resistance around 25 Last week DATE that were cooler than expected. There might be some optimism here. Signed investors are putting on more risk but it's in Investors are standing pet Possibly although we're starting to see dodge ORG coin and Shiba Inu ORG for instance have made big gains in the past couple of days DATE and that might be some retail getting into the mix as well but as you say institutional investors do appear to be getting in a lot of the ones that went in were pretty comfortable with the volatility saying, okay, we, you know, we're good with something in the say 15 to 25 CARDINAL And dollar range. So, yes, we're seeing more on chain activity from some big players. We've been talking about this Ethereum PERSON 's big upgrade. How much of that has already been facted into the prices that were seen right now? There has been a lot factored in and there could even be a sell the news kind of sell off after it's done it's supposed to be around September 15 DATE at this point but it also takes a lot of uncertainty Out of that market and so we've seen some optimism and there are people who think that we could still see more as we get into that and as we wait await the next inflation prints for instance. And of course regulation is in play. We have the Of the authority of Singapore GPE reviewing I guess the rule of cryptocurrency is in the financial system. I mean, what are we hearing? What are we expecting?
Like serve the authority of Singapore GPE reviewing I guess the rule of cryptocurrency's in the financial system I mean what are we hearing what are we expecting how might this play out in in in in the market Well, it's kind of there are two CARDINAL things you can say about it. One CARDINAL institutions, bigger players really do feel comfortable with more regulation because they want the clarity of it. You also still see the people say the more libertarian, you know, crypto back to its roots, people who Love WORK_OF_ART that as much but in general it seems to be hoping the market to get a little bit more certainty from those regulatory players. Beware volatility blue bags do I know there. Thank you. Plenty more ahead. Keep it here with us. This is The difference between endless research and a winning strategy Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis. To accelerate the research process. To grow your practice and make better use of your valuable time. The difference is Law Oh the much more line 60 40 CARDINAL portfolio 60 40 QUANTITY you know a portfolio or generally speaking for most investors would make sense because We'll make a campaign. We need to give it some more time. There may be better ways to go than 60 40 but I think it's a base case. It's still next lot of sense. Close to CARDINAL five or 10. I actually think they're increasing it pretty dramatically at the moment is is they're looking for Going outside into other real assets, real estate, private equity, private credit, can can be a healthy addition to the portfolio and really help diversify your return because 60 40 DATE as I mentioned has been a challenging portfolio construction exploited half CARDINAL . Alright that was our MY post question of course that we've been asking all of our guests here. The 60 40 DATE portfolio is it really dead? So it seems like it's overwhelmingly people say look it possibly is still viable has right the 63% PERCENT still say yes Surely you're gonna see these correlations reserve yourself once again where you know if if negative correlations maybe but We've seen the the first ORDINAL part of this year DATE or so I mean you basically have seen those move in tandem right and you can actually perform above inflation right and this is what people were saying You know they're saying it's viable you gotta just wait wait this out but then you know when it comes to what the alternatives are there's a lot of questions on what really you can replace bonds with too. Well Jerry PERSON 's still out right you talk about whether it can perform a barb inflation right now yes inflation at eight and a half percent DATE so Vaughn ORG if you want What would you replace it with? I mean, if you take a look at those, we spoke with they say real estate is a good bat Agriculture commodities
With I mean if you take a look at those we spoke with they say real estate is a good bat 32 CARDINAL Agriculture commodities. We'll talk about how food prices have been surging and expect to surge. I had 21% PERCENT say that's a place to be as well and gold at 14% PERCENT well we don't quite know we that's always the view out there that cold Can't really outperform inflation and crypto we know how that how volatile the crypto space has been so six% NORP still maintaining that Place to be but as it stands right now Is it if you ask me But I'll go with that real estate as well. Now, let's do a quick check of the latest business flush headlines. Chinese NORP developer, long for group is said to be receiving a 447 1 million dollars MONEY syndicate loan which would As this week DATE Outside FAC mortgage farms New home loans last year DATE . Scrutiny McCarthy Cash PERSON flow positive again Underlying fully One 1 billion MONEY was up 48% PERCENT on year DATE the border proved a buyback increase of up to 300 CARDINAL One 1 million US dollars MONEY over the next 12 months DATE . Right and those blue scope still shares were jumping or having jumping in Sydney GPE after those results early we did speak with the managing director and CEO Mark Vasella PERSON about that profit B and expanding that sure buyback We're certainly wear forecasting the outlook for the first half of the second year DATE to be not at the levels we're at and that's largely driven by pricing so what Over the last 12 months DATE with hot roll cool prizes almost reaching 2000 US dollars MONEY a ton was an extraordinary level of pricing that's a level of pricing Requiring at the state WORK_OF_ART that level we were certainly in a position to take advantage of that pricings now back around 800 US dollars MONEY a ton that's still a very healthy price in terms of the long run average which is more like $600 MONEY a ton so we've guided On eight CARDINAL to 900 1 million dollars MONEY eBit ORG for the first half DATE of the new financial year DATE which in historical terms if you weren't looking at it immediately after the record result we Blue scope. And mark your guidance as far as cash flow is concerned given the catfish that you have announced in your in your press release here. Tell us a little bit more about, you know, the seeds you're planting for the future. Yeah it's very good question I mean we think we think about certainly the cash regenerated this year DATE $ one MONEY . 7 billion CARDINAL on the back of those very high prices as I mentioned earlier We think carefully about how we allocate our capital our cash so we have a range of capital projects that we're focused on the blast furnace reline and new metal coating line in Australia GPE we made an acqui In the US GPE just before the close of the financial year DATE for a coding business and of course the money that we spend on on the expansion of our North Star LOC facility our mini mill in North America LOC so we think Carefully PRODUCT about that profile of projects that we have internally this money that's required to be spent for us to continue to decarbonize our business and meet the ever increasing targets around greenhouse gas emissions and then we also think about the cash that we In terms of returns to shareholders in our board have enough confidence in in the business model in the outlook that we've announced to
Shareholders and our board have enough confidence in in the business model and the outlook that we've announced ยข25 Final ORG dividend and also on up to QUANTITY 500 1 million dollars MONEY buyback so we're very mindful of what's happening in the market internal opportunities but also returns to shareholders Mark PERSON I know you don't have really a big sort of exposure to the Chinese NORP economy General sort of rule but certainly what happens there affects certainly the industry based on Seniors for the weakness in the economy. Where do you think that puts the outlook for the entire industry? Oh China GPE has AA significant impact in terms of the Asian NORP markets in particular so we watch that very closely I think the signals that have come out of China GPE in the last few years DATE around their challenge to meet Carp ORG decarbonization reducing them out of Sports GPE rather than bringing in high cost imports and then selling product is low cost exports I think that's been fundamentally For the steel industry in the Asian NORP region. So, we watch that data quite closely. No, that was a blue scope steel MD GPE and CEO Mark Visella PERSON . They're speaking with me and Dave PERSON . If you take a look how iron or commodities are going here, they're really are reacting to that data done that we got out of China GPE which was nonetheless Basically week you take a look at what we've seen on iron oral prices down close to two% ORG in Singapore GPE here right now we take a look at the nation still makers they turned out about 81 1 million tons QUANTITY of the alloy last month DATE that's down more than six% from a year ago DATE has. And of course the border market center of an impacted by that data that I'm out of China Asian NORP stocks pairing canes erasing losses for the year DATE though that is it from Bloomberg Mark So now you've been a JP Morgan PERSON for about 25 years DATE . Yes. Okay. So and now you run one of the most important cards of JP Morgan ORG which is I say is the asset and wealth management business. What actually is wealth management and how is that different than asset management? Great question The two CARDINAL are often used interchangeably but Have distinctions asset management business is where we manage money on behalf of Institutions sovereign wealth funds pension funds we manage them in mutual funds we manage them in ETFs we manage them in single stock single bonds Hedge funds private equity and the lake and that is the heart of the fiduciary business that we run here at J. P. Morgan PERSON . Wealth management is that plus Standing someone's entire balance sheet. So, for the individuals where we manage money, we also help them with their mortgage. We help them with a loan that they might need. We help them with their basic credit card and so wealth management is trying to help someone with their entire life both their assets and their liabilities, their planning, their The legacy that they want to leave for their families the 529 CARDINAL plans they need to prepare to get their kids to go through college and it's a great it's a great insight into people
To get their kids to go through college and it's a great, it's a great insight into people's, you know, entire journey. I've always been a person who's just been attracted to hair I like to sit and think and theorize how I can manifest these visions that I have for braiding and how I can take something that Macy ORG Like it's a line drawing in my mind and apply that to someone's scalp We are the only culture that has here that grows out of our head the way that it does Anyone from the African NORP diaspora is born with this amazingly curly hair that can be shaped into a variety of different ways of expression I want black people to love themselves for how they naturally appear and also to appreciate the cultural practices such as writing that our ancestors have practice For centuries DATE . It's a great question. Great question. It's gonna be the best question I get all night TIME . China GPE 's economic recovery unexpectedly weekends as fresh virus outbreaks way on spending meanwhile the PBOC surprises with a cut to key interest rates as it ramps up to support. Japan GPE 's economy recovers to its creep pandemic signs following the end of COVID curves on businesses will have the details Yet again in September DATE . 8 AM TIME . What is happening in China GPE as well just in terms of some of the cloudiness and lack of clarity that exists in markets. We had economic data that shows that there's still quite a struggle going on in terms of a lack of momentum in China GPE . This is the state of play and treasureries on the Monday DATE morning TIME . You're seeing the yield Remaining deeply inverted. We have defendants at minutes TIME and speakers that may shed light on whether the power pivot was a figment of the market's imagination, head shruncing, net sellers on the week DATE with the most aggressive selling seen in 10 years DATE specifically. I wanna get to a story around Saudi NORP Prince Walite Bentalal. One CARDINAL of the most high profile Investors, one CARDINAL of the countries richest man you want to call themselves the oracle of Omaha GPE 's Arabian NORP equivalent. This one of the most red stories and it's about him making a 500 1 billion dollars MONEY bet on Russian LANGUAGE . It happened In February DATE there's no Isn't by gas prompt And and the value of those receipts dropped sharply of course after February 24 DATE kingdom holding stock here to date in a broadly positive market struggling for direction down six% Latest ORG news Let's talk about the injury that has been afflicted to risk in the very first ORDINAL instance this morning TIME . This is about the quantum of misery from the Chinese NORP data which we will go through in more detail. Back to the little bit of a Since November DATE tapped on by a quarter CARDINAL of one% bank of America saw
Since November DATE tech time by quarter CARDINAL of one% bank of America ORG saw 11 Dollars MONEY for a winter DATE US GPE stocks the biggest inflow in 8 weeks DATE for Dennis Gartman PERSON warns this is a burr market walley and for him he or she who loses the least will be the winner Michael Burry PERSON has been bang bang bang on Twitter PERSON this morning TIME this is the relief rally that you've seen the Bear Market ORG rally Nasdaq By 20% PERCENT from its lows up 50% PERCENT since his January DATE lows but Michael Berry PERSON is banging the drum he's seen these 50% PERCENT retracements before and then an implosion that followed to some pressing warnings from Michael Barry PERSON to the oil Chinese date of the darkening China GPE outlook to the little bit of wind out of the oil market sale this morning again you've seen Opec and the I and the EIA ORG dying grading are all brought to Falls PERSON back ever so slightly but again Iran GPE could be open to doing a nuclear deal that's the latest line from Vienna GPE If they receive guarantees on sanctions. So the oil market fading the risk move. Let's get to Jews. She brings in the data in terms of how it's plundered across the Asian NORP markets. Jewels, good morning TIME . Hey, man. See, I certainly off the highs of the day on that disappointing a data dump from China GPE but you've still got regional stocks For a fourth ORDINAL session and we are holding at a 2 month DATE high very much led by our games that we are seeing in Japan GPE which I'll get to in a moment you're seeing a bit of a flat move on CSI ORG 300 but sentiment has been boosted by the fact that you had the PBOC give this surprise rate cut to that 1 year DATE MLF ORG and also to the 7 day DATE reverse repo from two CARDINAL . One to two% ORG and it was a 10 CARDINAL basis point cut on the 1 year DATE MLF ORG which basically nobody in the market was expecting but certainly Perhaps warranted as you are starting to see this weakness in the Chinese NORP economy we are seeing that data dealt weakness really weighing on the Aussie it is trending lower as is the one off by about four CARDINAL tenths of one% ORG against the Greenback PERSON let's have a look though what we are In Japan GPE the NK 225 on track tour race it's 2022 DATE loss that is here the Nikki GPE is the blue line the white line is the Tokyo Stock Exchange ORG or the topics index so both of those out performing what we are seeing in the MSI Asia Pacific LOC Index which is 15% PERCENT this year DATE and the all world index still down some 12% PERCENT of course helped out by a week yen the stimulus from the bank of Japan GPE and we also had a pretty good read on the Japanese NORP economy in terms of second quarter DATE GDP so they are now back to pre-pandic levels for that economy really driven by the consumer out there spending Jill PERSON thank you very much Julie PERSON it's only wrapping up at the tail risk from the data dump let's get a little bit more on that data from China GPE that we had earlier Steven Steven Engle PERSON is standing by in Hong Kong GPE so I I mean there's some rich language used this morning the darkening China GPE outlook Just how dark was the trifecta of data that we had Stephen? Yeah, Raymond Young PERSON at Ian's Ed Banking PERSON . He says, the data was alarming and if you look at it on the surface of things, manus. Look at how many different misses we got for the July DATE data. Industrial Production, miss, retail sales, big miss, fixed assets, urban Even though we've had a lot of stimulus a miss property investment miss new home prices a miss jobless rate stayed relative relatively stable just down a little bit five. Four% but then also in the sub day DATE that we saw that youth Unemployment. Those between 16 to 24 years of age DATE rose to 20% PERCENT . That is a record high and we have a record number of more than 10 1 million QUANTITY new college graduates hitting the job market and the prospects are not looking so good for the youth unemployment rate. So, these are all concerns as we Towards the party congress ORG later this year DATE for season ping and social stability and I haven't even mentioned property really a property is at the backdrop and the retail sales really also the weakness there indicating that the Chinese NORP consumer is not feeling the confidence and those industrial External demand is not necessarily keeping pace with what we saw.
In the confidence and those industrial production numbers where we showing that external demand is not necessarily keeping pace with what we saw a month ago DATE in June DATE when there was pent up demand and a lot of export orders came or exports came out of the factories and onto Because of those Shanghai GPE lockdowns that recovery didn't last long. Truly, I'm watering numbers. Stephen, thank you for the analysis that says Steven Engel PERSON in Hong Kong GPE . Recovered on its Let's get more with our China AJ ORG economic correspondent and the current so and I mean how does it stack up with what condiments we're expecting? Look the economy certainly got back where it was before the pandemic in the second quarter DATE . It's back it around four. 10 billion worth eh in size now Yusuf EVENT . It grew two CARDINAL . Two% compared to a year ago DATE . A lot of that Down PERSON to consumption that makes up about half CARDINAL economic activity in Japan GPE consumption grew one. One% capital spending by companies also increase that groom point just over one% ORG as well now it all speaks to the idea that Japan GPE was coming out of easing period of easing rest From COVID and both consumers and factories were getting up and running again but to your point I think the more forward looking suggestions in Japan GPE 's economy are at the momentum will be hard to keep going What is happening reflecting the price of imported oil I want of course you know the bank of Continues to talk about downside arrests to the economy and continuously support the economy. So You look the reading in second quarter DATE was somewhat positive as I say gets the economy back where it was before the pandemic forest hit but a lot of Economics are questioning just how sustainable the moment and we'll be here and they're looking for a slower end of the year for Japan GPE 's economy. Anna thank you very much and to Karen PERSON there I suppose a great deal hinges on on where we go with Dolly Yan PERSON which has been so volatile in the first 8 months of the year DATE thank you very much and just starting a round cup they have posted the biggest quarterly DATE adjusted profit of any listed company ever driven by high group price And production let's get more with our Middle East LOC energy market reporter Anthony Dapala PERSON return from the United States GPE do you know where you are you're back at home I do I do know each other Hey Facebook Whoever went away but let's be quite frank about it. I'm a Nasa ORG must be hailed in the hallways of Saudi Arabia GPE and this is a monster set of numbers. Run us through the big highlights. Yeah, I mean they're the raincoat was gonna kill it this quarter DATE was not a surprise oil prices have been booming and we've seen the previous results Some of the international oil companies that came in with record profits. So, with a ramp goes track record of being, you know, the biggest company in the world at certain points, having the most profitable oil company. It was clear that we're gonna bring in these results and they did a little bit better than the mark was expecting. So, it was a slight beat on the profit, almost doubling it from from last year's DATE period. They really brought it home with of course the high oil prices contributing to that higher income from the oil but also refining. They pointed to refining being a component of the increased profit there as gasoline fuel. All those prices increased more quickly When did the price of oil and we saw huge demand again I mean that's our warning that if jet fuel demand comes back to the way it was before the pandemic we're gonna have problems with restraint capacity on jet fuel on those products Maybe a special dividend or some kind of additional reward foreign investors cuz it's really been reflected in this share price per se. We're already there paying the largest dividend in the world now so they've maintain that. They've said they'll keep that for the coming quarter DATE . Endless we're gonna have an endless call later today TIME they'll probably be asking about some of that they'll probably be asking a lot about the capacity and rampost plans to increase capacity because those are some of the main factors as you saw the dividend on the equity side the capacity aspect on the market side so we'll we'll be looking to get some more information But we haven't heard anything yet about
The capacity aspect on the market side so we'll be looking to get some more information about that but we haven't heard anything yet about any increase in in the dividend and when asked the company is so far said they're gonna be sticking with it like we said it's the biggest World yup so they probably think that's enough we'll also be looking for where that investment is going and one CARDINAL telling point in the statement is that a rampose sees Which isn't hugely bullish and it's kind of in line with some of the more what we would have previously seen as negative oil demand outlooks that we've seen from some of the IOCs. Anthony PERSON , fantastic to have you back. Thank you for stopping by on the set. That is anti the power there. Wanna get you a red headline hitting the Bloomberg PERSON . This is on Wall Headlines as well from around the world Landed in Taiwan GPE on Sunday DATE for a 2 day DATE visit. They're meeting with Tarmony ORG 's president saying when and other lawmakers according to the American Institute ORG the entire one. Discussions include global supply chains and climate change. The trip risks keeping Rusty PERSON is starting to recover after being stabbed at a lecture in New York AP GPE has quoted his agent saying the author is now on the road to recovery rushed to have been removed from eventilator Sunday DATE and is able to talk and joke the author of the satanic versus suffered serious injuries on After being stabbed multiple times shortly after taking the stage. The chair of the US House Intelligence Committee ORG Adam Schiff PERSON says he hasn't seen any evidence that materials the FBI ORG sees from Donald Home PERSON we're probably declassified Trump ORG said Friday DATE that everything taken was declassified or covered by executive and attorney client privilege chef says that argument is absurd and he's asked US GPE intelligence to provide a damage assessment of the seized records. Water levels at a keyway point on the Rand River LOC are expected to be steady at an extremely low level this week DATE as a climate crisis adds to Europe Crunch LOC . Can't transit past the market cub which is west of Frankford when the water level is about 40 cm QUANTITY or below it is currently at about 35 cm QUANTITY the rain is western Europe LOC 's most important river for transport Fuel and other goods And tributes are pouring in from Wall St and beyond for Auntie Jane PERSON they can't talk it's Deutsche Bank Co ORG CEO. That the age of 59 DATE was announced on Saturday DATE after a 5 year DATE battle with cancer he's been credited with building Dorcher Banks investment banking business and turning the German NORP lender into a global trading powerhouse Global news 24 hours TIME a day on air and on Bloomberg PERSON quick tape powered by more than 2700 CARDINAL journalists and adolescence in more than 120 CARDINAL countries this is Bloomberg Yusef PERSON . Thanks Jules PERSON let's get you a bit of a snapshot of what else is still to come on the program sure I have management aren't they such a sucker and joins us to talk strategy individually market and what she makes so of those monster earnings We speak to HSBC ORG 's max PERSON catner about what he thinks of cash in the as an allocation. In this market. This is Bloomberg PERSON . Have you seen from the government in terms of green funding? Has committed to dubbling the amount of investments in so called green technologies. I think we need more than just pronouncements. We need real
Startups Companies in this space. Well I think he's framework is reflective of this challenges that Japan GPE 's society is facing namely that growth has been present but growth has not been a force evenly distributed but Innovative will startups that that can really drive the income growth that the government needs to redistribute Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE . Asian NORP stocks Hey also sit waiting for the fad minutes later this week DATE to reveal the clues Size ORG of the potential next rate hike max PERSON catner assesses all as the chief multi acid strategist at HSBC Max ORG no pressure on you this week or any given week but if I look at The data that we have this morning TIME . I mean, these darkening clouds of data from China GPE . My question to you is, as you start the week DATE looking at risk in the back quarter DATE . When you see these darkening clouds, does it reset the tone of a quantum of misery just for China GPE or is it something more ominous for the world? Good morning TIME . Good morning Manus. I think it is something more ominous for the world. In fact, when we look at all of ours and global leading indicators. We've got a bit a sort of Leading indicators Manufacturing across housing across the consumer as well and that is really in developed markets and in emerging markets are really more of a global And what that says is that actually what we've seen so far so the leading indicators of the leading indicators Going down really quite sharply and in particular in the last two 3 months DATE But indeed really being something much more broad based both geographically but also crossect this so it But it's not only just a darkening cloud picture perhaps in China GPE but really across the board and across sectors The market's life team has done a lot of work here at Bloomberg PERSON just reaching out to a 1056 DATE investment professionals in their weekly DATE pulse and what they've basically gathered is To 60 40 CARDINAL portfolio approach isn't quite dead yet Basically investors think that this is actually a good way to beat inflation but it's going to be a longer term place that is by a margin of roughly two CARDINAL to one still see this as a viable strategy for delivering returns over What are you telling investors this morning TIME about an approach like this? Is it relevant? Is that what needs to be done? Look I think the the 60 40 DATE bashing has been invoke for for quite some time right? The reality is whenever asking investors or whenever ask anyone okay We're not gonna do 60 40 CARDINAL here we're gonna replace the 40 CARDINAL portion of bonds with something else now give me something that is as liquid and also as big as the bunk market the answers are usually quite thin shall we say so you know in Over the next 10 years DATE perhaps the allocation to commodities should be a bit larger.
Over the next 10 years DATE perhaps the allocation to commodities should be a bit larger rated in order to Inflation On top of that we'll be looking Strategic ass allocation data so we look for example in equity meters equity sensitivities of a typical balance funds or we look at the AAII strategic allocation Over the last 2030 years DATE , on average to equities and bonds. Well, guess what? Where it comes out? Roughly at 60 40 And we know it's much more strategic as the location. So, I never really quite understood why people said, oh, look at 60 40 DATE . Ed PERSON really badly last month DATE . Therefore, we have to It's really a strategic, a long-term ass allocation too like like you've just mentioned. But I must declare actually mad I've already had max PERSON I've already had the letter from from the pension provider apparently I've pivoted to 4060 CARDINAL so that that'll give you a bit of a clue but that leads is very nut Very nicely to all to do the skewer and the risk max PERSON in your life. You say, that buy everything mentality, buy anything backdrop will fade. You're on the way to equities, but then this this place into the into the bomb allocation that you have, you would add to develop market bonds At the end of the year DATE if you're in that scenario Yeah, I think right now, you wanna be more in the value camp and equities, right? So, you wanna be more playing towards the higher yields, very tactically. But once those yield levels More compelling like you said I think that is then the time to add because exactly of what we've talked about in the first ORDINAL segment because of this darkening a global growth outlook right not really being something constraint to one CARDINAL particular geography or to One CARDINAL particular sector, but really much more broad based these days DATE . So, therefore, actually bonds make more sense than equities. Now, what we have seen however is that of course, real rates have declined so much and longer dated real estate have declined so much and that's For everything, right? Whether that today DATE is whether that's growth, whether that's bonds, whether that is the Japanese NORP yen, the Swiss NORP front, gold, bitcoin, you name it, right Buy PERSON anything mentality but that can only go as far As the market expect a good kind of fit pivot and that is what I question my question really the good kind of nature for fit pivot I do believe if we do get a fed privilege It's only gonna be because of That's something you wanna pick up on Max PERSON because I'm looking here at the implied probabilities for what the fed may or may not do come September DATE . Do you think go for our clients? It's looking like a coin toss here on a 75 CARDINAL bit move, 50 CARDINAL , 50 CARDINAL chance at a time when I'm looking at a 50 50 CARDINAL option I reach out to people like Max Ketner PERSON to see which way this is gonna go what's your read? Yeah I think we'll probably head into September DATE with that 50 50 CARDINAL property to to be quite frank right and I don't think we'll get a lot more clarity before the FM Meeting quite frankly because we got the CPI data coming out so shortly Of the FMC ORG meeting and that's probably gonna be the crucial later that the more crucial thing for me is what's gonna happen after September DATE right? So what do we get out of the minutes? What do we get in terms of the future fed ORG path into 2023 DATE ? Two CARDINAL , three CARDINAL , rate cards. So, something I can do what we had 2019 DATE where perhaps you have a tiny a wee bit of recession right? Right. Nothing really serious. Any of two CARDINAL three CARDINAL rate cuts in everything is gonna be swapped higher. And that is that sort of anything rally's mentality that is what I question. That's really important to keep in mind Max PERSON . It's been great reflecting on some of these ideas Max Ketner PERSON . Chief Waltias is trying to just hit HSD. We still got much more to come on this program.
My max PERSON it's been great reflecting on some of these ideas Max Canter PERSON Chief Multi has to try to just take HSBC ORG we still got much more to come on this program but it's just Bloomberg GPE Recently cryptocurrencies have been very popular and if a client came to you and said, look, I'd like some cryptocurrencies in my portfolio. What would you say? Oh, we've actually been really deep into crypto, Into learning about blockchain And all of the new businesses. You know, I would Prizes as Crypto You know we have made a series of toe hold investments on behalf of our clients both in some of the currency baskets as well as with some venture firms that are investing primarily in the computer area. I think it has the potential to be Lately game changing. But it is still Such the wild west and so it's so uncertain but there's it has the potential to completely upend everything. Across the Middle East LOC but in the equity markets we saw a little bit more of a steady picture remember that to We're insurance services as well at some Earnings just before the finish line for the quarter DATE . Look out for Halloween DATE brothers and of course ongoing analysis and reflection on the huge Saudi Aramco NORP delivery. To the commodity markets Yousef PERSON just dopating into the oil market the old market is lower this morning obviously you've got those stunning stellar arm code numbers but crude down at nearly one% ORG in New York GPE iron or dine nearly two% ORG and will lose more altitude if you look at the steel makers producing 81 1 million QUANTITY Of steel this month DATE and that's the smallest number since 2018 DATE . So, you're looking at Doctor all on the back of this 30 poor and alarming. Data according to Max Katner PERSON at HSBC GPE . It's pretty much full service shadow banking with.
It's pretty much full service shadow banking with nobody in charge. Bloomberg PERSON the open with Jonathan Perry PERSON . Bloomberg PERSON cat weekdays DATE on Bloomberg PERSON . Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Meanwhile the PBOC surprises with a cuts of key interest rates as it ramp Support. Curves on businesses. Post the biggest profit of any listed company ever driven by high crew prices and production. Central Bank ORG we'll go big with tightening it again in September DATE . Let's check back in on those Asian NORP markets Juliet Sally PERSON is putting together the very disappointing Chinese NORP data and a rate cut what is it done for race Jules Hey Matt PERSON I see I was certainly we are off the highs of the day on the regional benchmark index but still firmer for a fourth ORDINAL session certainly that disappointing data dump out of China GPE did see a bit of witness coming through in the Hong Kong GPE Stimulus which was a bit of a surprise that cut to the 1 year DATE MLF ORG taking it down 10 CARDINAL basis points to 275% PERCENT . And also a cut to the reverse repo rate that 7 day DATE rate just slightly to two% ORG from two CARDINAL . One% so that has seen a little bit of I guess support for Risk given that we are expecting to see further stimulus now from Chinese NORP authorities but certainly it's been playing out in the currency market with weakness in the Aussie GPE dollar on the back of that disappointing China GPE data dump and in the offshore you won as well which is up down I should say about Chance of one% against the dollar. But have a look at Japan GPE 's market. They're up by about one% ORG even though we're seeing a stronger yen today DATE as well and this is the market that we are looking out for. The fact that you've had the week DATE yet over 2022 also bank of Japan GPE 's stimulus Now on track that market the K 225 Yusuf two CARDINAL erase it's losses for the year DATE so getting very back to where we saw it mid last year DATE in 2021 DATE the Nikki ORG certainly outperforming today DATE The long road to recovery. In the meantime, analysts are predicting the worst drop in profits for Asia LOC since 2020 DATE . What are some of the highlights? Yeah, absolutely. So, we have seen that the MSCI Asia Pacific Index members earnings per share slid 16% PERCENT in the 3 months June DATE from a year earlier DATE and now we're expecting about a 12% PERCENT drop in earnings from those companies listed on the MSI China GPE index of course this index does make up a large proportion of the MSI Asia Pacific LOC Index as We know the reasons for this are the COVID lockdowns the impact to China GPE 's economy but certainly it is looking like it is going to be some significant losses for these companies in the prospect of dwindling profits adding to the negatives that have just ragged on the overall regional bench Index over the past year or so DATE it is down as you can see about 18% PERCENT over the past 12 months DATE versus what we've seen in terms of near 30% PERCENT drop from the MSCI China GPE index and a 10 and a half percent CARDINAL drop from the all world index JP Morgan though saying there are some ups
Months DATE versus what we've seen in terms of a near 30% PERCENT drop from the MSI China GPE index and a 10 and a half percent CARDINAL drop from the all world index JP Morgan though saying there are some upsides for Asian NORP stocks they are looking at the reopening place in Southeast You're in tourism and retail and you've got M and G saying that some of the improving earnings elsewhere in the region could see the likes of Indonesia GPE and India GPE outperform Alice ORG . Jill PERSON thank you very much Report it in Singapore GPE that Jeanette Sally PERSON . Predicts global inflation will stay at nose bleed levels as a supply chain crunch massive physical stimulus commodity price shot rising wages or fuel the fire someone Foxman ORG has more on heights pay night TIME here in the Middle East LOC so we've got some new data this time across the region So how's it shaping up so far? Well, the notable one to me manus was cutter. Cutter has been leading the inflation picture and we did see inflation ease up slightly in July DATE . Coming down from five CARDINAL . Four% to just under a five%. Again, they've been leading the way in terms of overall in So notable to see that pullback yes we have the world cup yes we have L and G story in the picture but maybe we saw a little bit of a pullback because of the summer DATE we'll also get Saudi NORP CPI data coming out today DATE they have been the lager across the region but Bloomberg econom Points ORG out the trend is much higher despite the basic effects essentially of that VAT hike from a couple of years ago DATE and Bloomberg PERSON We are expected to end the year at three%. Also saw Israeli NORP inflation data coming through a little bit outside this gulf LOC region. Accelerating yet again to four CARDINAL . Six% on On your basis. This should give more father for the Bank of Israel ORG to maintain its very aggressive stance. Starting to hike rates for the first ORDINAL time in really over a decade DATE from that cycle. That meeting that we get next central bank meeting is on August 22 DATE . And then you're also looking at the impact of the Russian Ukraine war GPE on some of the investments by Sally Billionaires PERSON , right? That is right and that we got this filing out from the Saudi NORP exchange and revealing something rather astonishing from kingdom holding which invested 500 1 million dollars MONEY in three CARDINAL Russian NORP energy names back in February DATE and in March DATE so those names include Luke Oil PERSON gas prom and Rosneff ORG with Gas Prom getting the biggest chunk of that investment remember we saw the shares of those companies really After this war began but perhaps seeing a bit of an opportunity to make money from this crisis and I think the interesting thing here is remember there are ties now between Saudi NORP PIF ORG the Well fund and kingdom holding run by prince Because PIF ORG took a 17% PERCENT steak in that company just a couple of months ago DATE so this may is something that may raise some eyebrows kingdom not telling us whether or not it continues to maintain those investments Also notably coming through from this filing a couple other country companies that kingdom has invested in. They include Uber, total, Alibaba GPE , BHP ORG , and adventure firm called Hercules Capital ORG . And Moody's ORG dying greeting turkey's long term foreign death rating what was there thinking behind this Well Policies that the Turkish NORP government has maintained to try and stabilize the currency, Those foreign exchange reserves. They say that they are unlikely to be effective in restoring some degree. Me of macroeconomic stability. FX ORG reserves have been declining across the year DATE even though they saw a little bit of an increase last month DATE we're looking at a Turkish NORP lera that's flirting with 18 CARDINAL to the US GPE dollar so the weakest and ever really for the currency they're outlook is techn Stable PRODUCT here but this becomes the lowest quoting rated rating across the major agencies.
Didn't ever really for the currency. They're outlook it's technically a stable here but this becomes the lowest Across the major agencies we'll see if some of the other agencies will ultimately follow suit with this downgrade. Yeah Simon and you know I can I can relate to your reaction looking at some of some of the numbers in really we push Air out of my lungs as well. Simone, thank you for that. Simon Foxmooth cut a financial center in Doha GPE . And let's get to Saudi Aramco NORP now which has posted the biggest quarterly DATE adjusted profit of any listed company globally. That was driven by a high crude prices and production, net income, that's running through the numbers, that rose to $ 48 MONEY . 4 billion CARDINAL in the second quarter DATE . It's up 25 CARDINAL . 5 billion CARDINAL a year earlier DATE . The company is using the windfall to reduce the debt and invest in a huge expansion of its production capacity. Let's get to art you touch recycling, director of investments, and Particularly on the bottom line a little bit of a surprise that they haven't announced a special dividend yet. Yes I mean I was thinking the same thing but it wasn't line with the expectation it comes to the net profit 75 1 billion dollars MONEY for the whole year DATE they came out with 18 CARDINAL . 8 billion for quarter two DATE exactly in line with mode market was expecting Second half of DATE Just because I think oil is staying longer for a higher for a longer period of time. And if not now then when And they certainly it's interesting when you look at the gearing numbers the gearing but not collapse so it came from just over 14% PERCENT down to just under eight% and also the guidance in terms of the production numbers Quite chunky as well. So those are other facets that could build that case. Exactly. So the gearing numbers were about seven. Nine% for quarter two DATE and the guidance by the management was to bring it to five% level. So if it moves to five% level which I think it could in quarter four DATE then there is obviously they might open Upward dividends. How does the Saudi NORP Aramco opportunity? Especially also we just spoke to from H Maybe ORG some of these players listed players like Saudi NORP Aram even though he didn't mention it explicitly. How does that compare to other Sort GPE of sectors within the Sally PERSON Tadal As far as the numbers are concerned banks with super strong so banks came out with an exceptional amount of profit landing group was up like 18% PERCENT mortgage recovery we saw we saw electric Improvement which has been a headband as far as banking sector was concerned. Ah so the top line equity was down to 50 CARDINAL basis points on a month DATE on Monday DATE basis. But consumers were weak. Ah we saw some weak Numbers ORG from Not so great numbers from Almara as well health care the one of the strongest franchise in Southeast unexpected the So overall I would say Saudi Tatawa PERSON was mixed set of numbers. Mix the neutral. When you look at risk I mean just reflecting on what Max PERSON had to say to us which is you know he seems to die this narrative that you're gonna get that some huge pivot from the fed and you would also concur without you say the case for a significant pivot from the fad is weak And you're using this sort of buy everything rally as a moment to trade back on risk so just talk us through why you think the pivot is weak and what do you what are you skating back on the most the current rally that we have seen man is since the beginning of July DATE I think it's totally over done just because we haven't seen significant infl Interesting highly leveled names, highly names, the industrial, the the real estate names, and we have kind of upping our quality, rotating our portfolio in terms of Team ORG . The other line here in the golf I mean Emar PERSON properties emo development also switching ownership a little bit from our properties a good chunk going To the ruler of Dubai GPE at does that change anything meaningfully on your outlook on your rating for some of these stocks? And I think overall outlook for the real estate sector is very robust. We saw some numbers of cost from real estate from Abu Dhabi ORG . It was very good. We expecting very very
And I think overall outlook for the real estate sector is very robust. We saw some numbers of cars from real estate from Abu Dhabi ORG . It was very good and we expecting very very solid and profitable numbers from MR GPE and Amada GPE as well. We've given back a great deal of the war premium. We've talked about this consistently in New Orleans GPE . I'm reading more notes that are talking about $80 MONEY than they are about $130 MONEY . Dennis Gartman PERSON . However, says, you know, be careful. Look at the back That's with a smart footprint of money will be and he thinks that we've seen the lows in the oil market And that we're gonna trade higher from here. It it backdrops a great deal of our risk sentiment in markets for the clients that you talk to. So you are you hear more people on the bar side than they are on the bull side. What what are the clients saying to you? I don't think that people are on the best. I like the market is totally addressing the demands out of the equation because of global Yeah. But the the supply side is totally unaddressed. It's totally. I mean the fact remains that UAE GPE and Saudi NORP beyond these two CARDINAL countries. Doesn't have anyone else to add barrels to the market at the end of the day DATE and and global oil emergency stock or or the lowest in the last 30 years DATE . So, I think there's a lot this lack of this this lack of supply Is actually not in the price of oil. The risk premium is not there and the price of oil which is why we think there's a stronger case for higher oil prices in a medium term. Egypt GPE is also on your radar. We're counting down to a rate decision on August 18 DATE . So, that's later this week DATE They have a lot of catching up to do. The currency does have a lot to to deliver as well. How does this play out strategically? I don't think they're gonna increase rates right now although they probably have to do it sometime sometime this year DATE given where inflation is but we haven't seen very high inflation numbers for the month of July DATE But overall Egypt GPE we are not very keen on it the on the credit side it's down 16% PERCENT yesterday DATE we can weak EGP ORG a higher inflation totally a challenging external Doesn't both well on the credit story nor on the iconic story for now. Okay. On that red decision on 30 CARDINAL you never know they could always surprise us at each Andrew Sackerin PERSON director of investments over at Shua ORG as a management I guess this morning TIME on the Middle East LOC markets and the Iramco ORG first ORDINAL reaction this is Bloomberg Single PERSON market that over the past few weeks DATE has made it clear. It wants to go higher. It got a little spooked by the idea that due political potentials are rising. Economic policy symposium. Only on Bloomberg GPE television and radio
Only on Bloomberg Let's PERSON check in on these Middle East LOC markets now with our activities reporter for Albarrahi ORG . She joins us for a little bit of a dive into some of the earnings. We've had a ram kill. We've had a reaction on that stop price yesterday DATE but we've also had the Darwall ORG group itself. What are the numbers show there? Well with the the net income over 20% PERCENT a year on year DATE which perhaps isn't a surprise we have seen trading Normalize ORG in Saudi Arabia GPE especially from the 2020 DATE levels but it seems that the market still expected a slightly better set of numbers because the stock fell just about one CARDINAL . Seven CARDINAL Yesterday DATE but I think it really does show the picture in Saudi Arabia GPE that we're not necessarily in that boom that we've seen over the last couple of years DATE in Saudi Arabia GPE where the market was get hand and double digit returns In the high 30% PERCENT as well as a lot of retail traders as well as foreign investors coming in and of course the IPO is there themselves are starting to slow Earnings going forward. Speaking of some of the fees and some of the companies beginning to trade what's on New York GPE right there? Today DATE we A new IPO in Saudi Arabia GPE rather than new debut that's not the water coming in with a they raised about 110 1 million dollars MONEY and they're listing and in the again there's that more of that you utility play that we've seen with aqua power and so on but I think what Thing here is the debuts that we've had in Saudi Arabia GPE have been mixed so far they haven't been that steady performance of a stocks soaring in you know again handing 100% PERCENT returns over First couple weeks DATE of trading alone. So, we'll see how this company more of a smaller one but how that will perform and what that tells us about the market. Recovery and some of those names what what is behind that and maybe we've had this risk on rally globally in equities which everybody seems to be decrying so it took us through the Israeli NORP story well absolutely is there is really stocks it's no secret that they do tend to follow US GPE It's higher but looking at the fundamental factors we had the ceasefire early last week DATE which had certainly boosted sentiment stocks had sword at the start of last week DATE with the index actually erasing losses for the year DATE . It's About three CARDINAL . Five% on the year DATE and we've had for example a Bank of America ORG upgrade for Teva ORG I really heavy member on the TA 35 CARDINAL as boosting the stock and we've had a couple of Such as the airlines as well as Amdock PERSON 's them to they Estimates and they've supported the index going forward. You for some of those important points. That's a highway there. We still have much more to come equity futures in the US GPE called lower by about a fifth CARDINAL of one% ORG . This is Do you see that coming 24 hours TIME a day. Bloomberg PERSON your global business authority.
It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse Portfolio You know a portfolio for generally speaking for most investors with would make sense because at some stage you want market will make a comeback. We need to give it some more time. There may be better ways to go than 60 40 but I think it's a base case. It's still makes a lot of sense. And I actually think they're increasing it pre dramatically at the moment is is they're looking for Going outside into other real assets, real estate, private equity, private credit, can can be a healthy addition to the portfolio and really help diversify your return because 60 40 DATE as I mentioned has been a challenging portfolio construction that explore your to have. Fundamental tenants of the investing world over the course of decades DATE is 60404 DATE . Bloomberg Guester PERSON weighing in whether or not it's dead three quarters CARDINAL of people surveyed still see the strategy outperforming inflation over the next 10 years DATE Let's get to the UK GPE now where the main opposition labor party has proposed extending Britain GPE 's windfall tax that's on oil and gas companies saying the proceeds should be used to fund the total freeze on energy bills over the winter Set out to our expert on the subject that's Leanne Garrett PERSON students from London GPE Good morning good morning man it's Of all the soaring cost of living crisis here in the UK GPE just dominate so many of the front pages this Monday DATE morning TIME and I'm gonna Off with the guardian which basically says Kier Star PERSON was gonna give a speech a little bit later on today we can expect it at about 11 o'clock TIME and what he's gonna say is he wants a On this energy price cap and this is gonna help family significantly and he's also gonna call for an eight 1 billion lb windfall tax on the energy companies here in the UK GPE so that all to come this afternoon he is confirm Under his The energy price cap will be frozen at the current level it is now and it is expected to go up in October DATE 80% PERCENT rise taking the average household bill to 3600 CARDINAL lb but that would not go ahead under these pants so saving families about a 1000 lb a month which is significant At the moment and the 29 1 billion lb plan that you're outline this afternoon is something that is putting immense pressure on the two CARDINAL people to be the next conservative And the next prime minister as the Times ORG newspaper has a poll out this morning TIME from Ugov GPE which says three quarters CARDINAL of conservative voters are backing this plan that Kiastama LOC is gonna announce later today TIME and what does that mean for Liz Trust Rishi Sunak ORG going forward. We're speaking about battle whoever the incumbent is at number 10 CARDINAL they're gonna have a heck of a time with unions and not just a unions but wigs and guides I'm talking about the baristas the dog workers the railway workers So again this is gonna be a week DATE of pretty big strikes in the UK GPE . You're so right so not only is the new prime minister gonna have to deal with this cost of living crisis they also gonna Deal with the strikes that we've seen in the UK GPE and this is really been dubbed this summer DATE of discontent hasn't it Madison PERSON you said we've heard this term loads of times throughout the last few months DATE and it All over inflation and pay and the cost of living so on Saturday DATE we did see more train drivers strike and this really affected so many people it affected people going to football games and also Affected people coming into the country tourists and this is because the unions are saying that they're workers want more money to live because it train drivers are just not being paid enough at the And coming up on Wednesday DATE we have another strike by the RMT union ORG so on.
Play of course Aussie's Diamond ORG and and the Yan PERSON eh is a little bit more of a haven this morning TIME . I'll tell you what institutions are also doing. They are buying cryptocurrencies again. It comes just as retail began to get cold feet. So basically This partnership between Black Rock LOC and Coinbase it makes it easier for institutional investors to get involved and so the narrative is back Bitcoin PERSON added 20% PERCENT of the past month DATE Ether advanced 80% PERCENT Major institutional investors making a move currently we're looking at Bitcoin up about two CARDINAL . Two% the coverage continues from Dubai GPE London GPE and the rest of the world this is Bloomberg Apple ORG fans will likely have to wait a little bit longer than expected to get their hands on Apple ORG 's first ORDINAL mixed reality headset to compete with menace oculus the iPhone ORG maker had plans to reveal the new device as early as this June DATE at WDC ORG and then release it later this year DATE . But the Overheating PERSON camera technology in a new operating system that means that an intro is early as the end of this year DATE or early next year DATE with a wider consumer release in 2023 DATE is more likely. The headset is plan to have super fast M one CARDINAL pro light chips immersive audio and speaker technology and capabilities for media consumption gaming and communication the headset will be pricey over and probably cost well north of $ 100 MONEY . Developers to write software The first ORDINAL headset however is only beginning for apples ambitions in The company is planning a standalone augmented reality headset as a follow up later of this decade DATE . I'm Mark German PERSON this is power on. This is Bloomberg Daybreak European PERSON in Dubai GPE with the stories that set your agenda Production miss the forecast 532 1 million dollars MONEY a day. That is the daily DATE profit of the oil producer Saudia Ranco PERSON in the second quarter DATE . The most ever by any listed company. Plus
The most ever by any listed company Plus Taiwan GPE Redox a US GPE congressional delegation arise in Taipei GPE after a visit by Nancy Pelosi PERSON spurred China GPE to launch its most aggressive military drills in decades DATE Warm welcome to the show are you spoke by bar market rally Reading Michael Burry's PERSON tweet are you listening to Dennis Gartman PERSON either way this is an equity rally which is being much maligned and deeply questioned I've just had a conversation with HSBC ORG let's have a look at the equities we are coming off very much on the back of this trifecta of missus in the China GPE data which we will dig deeper into in just a moment Den It won't last much longer. He or she who loses the least will be the winner. Stop to lower this morning TIME . Now is that done by quarter CARDINAL of one% ORG . There's a quantum of bad news which is coming in across the Classes PERSON this morning from China GPE . Let's talk about the cross to ask it wet because you've got this lack of belief in the equity narrative. But to the bond market and the oil market, the oil market is done by at one% ORG this morning TIME . Again, could I run come back into the fold if they get the sanctions lifted that they wanted. There's talk of that in the market. That's pressing on the supply site. 10 year DATE use Rising GPE this morning TIME . Again, there's a real split in the camp weather. We'll get 50 or CARDINAL 75 CARDINAL basis points. This swap market says 60 CARDINAL basis points at the September DATE meeting. There's a long way to run until the September DATE meeting. The headlines by the way are the biggest sellers of 10 year paper last week DATE . Bitcoin. I just thought we threw in a little bit of bitty. Up by two and a quarter of two DATE and Equity Least 2018 in China GPE so the underbelly of China GPE is malevolent one could say. In terms of sentiment and the current can bring his very latest on that I reported her standing around the world Steven Suchinski PERSON has the very latest on the Iranco NORP earnings Einhorn PERSON we'll talk us through the lines on Taiwan GPE and Jules GPE has ever will wrap up the Asian NORP market session with rake cuts and toxic data. So let's get to China GPE and the Central Bank ORG I'm expecting those interest rates to ramp up support for the economy way down by COVID. Lockdowns and a deepening property slump. For more let's bring our chief Asia LOC And the current. So, the cavalry have arrived but are they sufficiently armed and equipped? Weakness across the board minus in in China GPE 's economy according to this data July DATE remember was expected to be the recovery month instead we saw figures for retail sales and industrial output investment All falling more signs of weakness in the property market in terms of new home sales and prices. I only mentioned of course all of that four CARDINAL essential bank to take eh to cut its key interest rate for the first ORDINAL time since January DATE in a sign that shows you just how concerned authorities About the state of the economy right now. There was some modest good news on the unemployment front to survey jobless rate ticked lower to five CARDINAL . Four CARDINAL from five CARDINAL . Five CARDINAL but within that use unemployment actually rose again. It's hit a new record. So when you take it all together the number of show that the recovery in China GPE appears to have Are already it's clearly crying out for more policies support and there's 1 o'clock economist said today DATE he describe the whole pictures looking quite alarming now as China GPE had the deeper into the second half of this year DATE Anna thank you very much and the current our North Asia LOC correspondent on the data to study Iramco ORG as I said it posted the biggest quarterly DATE just a profit of any listed company ever it's a staggering tag to have higher prices and production help boost another Steven Suchinski PERSON is with Stephen PERSON I mean these are blistering numbers. I don't think anybody's surprised that they were so good. I think maybe some are surprised that there wasn't any salivating extra dividend. Yeah, you know, when you look at the other big energy giants around the world, they're having a similar giant boost and prices because oil is expensive. And to do because of that,
You know, when you look at the other big energy giants around the world, they're having a similar giant boost and prices because oil is expensive. And to do because of that, they're increasing their dividends to to the folks who own their shares. But if Audi Ramco PRODUCT did not do that, Instead, they're gonna try to reduce their debt. They're gonna use that money to invest in future production. Which is more because they they look over the next decade DATE , oil demand is going to increase according to them. They say that the energy transition aside demand for oil and oil like products will continue to increase when you invest that money to boost our output, potentially from 12 1 million barrels QUANTITY a day to 13 1 million barrels QUANTITY a day it's one of the things that they have been looking at it's going to be very interesting going forward whether there is more windfall this could be the peak for Saudi NORP Aria Ramco PERSON profits unless oil prices jump back up to where they were a few months ago DATE Steven PERSON , thank you very much. Steven Stachinski PERSON , with the very latest on the Aramcoat PERSON numbers. A US GPE congressional delegation has landed in Taiwan GPE for a 2 day DATE visit. Testing China GPE 's reaction after the house speaking Nancy Pelosi PERSON went earlier this month DATE Bruce There's no Real Escalation online as far as I can see or is this the calm before the storm on this delegation's arrival in Taiwan GPE who are they and just high up the let's say the pack in order are they? Well I think that's an important point Very few people is high in the pecking order in the US GPE of course than Nancy Pelosi PERSON who's the speaker and that was the first ORDINAL trip by a speaker in a quarter of a century DATE . This trip on the other hand is led by Ed Markey PERSON who's senior senator from Massachusetts GPE along with several congress ORG people. But the visits by congress Congressman ORG senators to Taiwan GPE are not that unusual there was a visit last late last year DATE by Senator Bob Menendez PERSON chairman of the foreign relations committee so up until Nancy Pelosi's PERSON visit China GPE 's reaction has been to express his pleasure but Haven't Lifted, lifted things in the way that they did following the visit by the speaker of the house. So, we'll see what happens this time. Send it to Marky PERSON and the others in the delegation are are meeting today DATE with Taiwani ORG 's president signing one and with other officials, they're also meeting with some business leaders. The response we have so far from the Chinese NORP Obviously displeased interesting they've don't accept the argument that well of the United States GPE we have separation of powers there's the president executive branch there's congress ORG legislative branch and their co equals Chinese NORP statement is there is separation of powers in the United States GPE but Power is part of the broader national power representing the United States GPE and the Chinese NORP spokesperson vowed what he called resolute countermeasures following this latest visit. Bruce, thank you very much. Let's see what the reaction at holds for the world. Two CARDINAL Asian NORP ambassadors, they're grappling with disappointing Chinese NORP data. A surprise stimulus from the PBOC, Juliet PERSON , Sally PERSON , has put the market reaction together for as jewels. I mean, it's torn, aren't we between the data and let's say Delivery PERSON from the PBOC. Yeah, indeed, man. I said also what it means for the banks next week DATE , will they cut their loan prime rates too, but a lot of analysts saying, how much further can any reduction actually help to stimulate the economy too when you've already got rates at or near record lows? What we are seeing though is a big rally in the bond market on China GPE 's 10 year DATE yield dropping About seven CARDINAL basis points and this is one of the biggest moves that we have seen since the onset of the pandemic. We're also seeing this play out into the currency market. Let's flip the board and have a look at what we're seeing with the offshore you won and the Aussie dollar both weaker against the Greenback PERSON on the back of this disappointing data that we had that ended alluded to you. You've now got the Aussie GPE . Just holding under Broadly PRODUCT though we have seen that stimulus in terms of the PBOC rate cut for that 1 year DATE MLF ORG and of course the 7 day DATE reverse repo give a little bit of stimulus to or support I should say Asian NORP investors but it's really been driven by what you're seeing in Japan GPE .
Part for that 1 year DATE MLF ORG and of course the 7 day DATE reverse repo give it a little bit of stimulus to of support I should say to Asian NORP investors but it's really been driven by what you're seeing in Japan GPE the NK 225 and outperformer today DATE and that index man is close to erasing it's losses for 2022 DATE Jill PERSON thank you very much very succinct to the point currently under pressure coming up on the show as Jules PERSON mentioned the Chinese NORP economic recovery unexpectedly weekend in July DATE we're gonna dive into those numbers what does it mean for the mackerel look ahead of the fed minutes this week DATE and it's a good day is in the house she's the equity strategist for Emirates MVP ORG is she part of a Rally. For an energy price cap For the country facing its worst cost of living crisis in decades DATE more on the story right here on Bloomberg PERSON . Metaverse. Immersive experiences that have a sense of active presence. One 1 trillion dollars MONEY market by the end of this decade DATE . And whether you know it or not you'll probably be working there in the future. Removing into a world where we're gonna be interacting with computers with our bodies. Definitely trippy. I think the adoption curve is gonna be slow. It's weird. Thing right now. Oh, look at you. If you have no legs. Why did the biggest names in business choose Bloomberg PERSON ? That is a great question. Great question. Great question. It's day break Europe LOC your Monday DATE morning TIME kicker for risk. Chinese NORP economic recovery unexpectedly weekend in July DATE . Fresh COVID outbreaks across the country. Wayne PERSON on the consumer and business spending. Estimate earlier China Central Bank ORG took a surprise step cutting its key rate for the first ORDINAL time since January DATE was waiting for the 5 minutes TIME to hit the tape later this week DATE May reveal clues on this size of the next rate hike a lot has changed of course since the last rate hike I need a good is the head of equity strategy at Emirates Ambity ORG I need a good to have you with me this morning TIME good morning I don't know if I read one bullish note over the weekend DATE Dennis Gartman PERSON wants to cut risk at the arch chrome eh in diamond Really scary tweets talking about the year 2000 DATE talking about Anron ORG talking about 911 CARDINAL it's all bearish rhetoric and yet this is a darn hard rally to I convince to you this equity market rally will hold globally let's start there. So minus what we have been seeing this whole year DATE is rallies and pullbacks and I think this is what was expected when you have a rising rate regime you have fears of you know growth slowing as well
Use and pullbacks and I think this is what was expected when you have a rising rate regime. You have fears of you know growth slowing as well as of course the supply chain constraints that we are seeing. So this current rally that you have seen and from June 17 DATE which was about the law you've seen a 10% PERCENT rally Global equities about 17% PERCENT and the SNP 500. Now, of course, every single investment house is trying to figure out, you know, where the SNP 500 is going to end this year DATE . Ring there. Where are we gonna be at the end of the year DATE ? Estimate is 441 25 CARDINAL and that was based on a reasonable price to earnings of 18 CARDINAL times earnings growth of 10% PERCENT . We are not you know able to Europe LOC come most houses are in the state of Luxe GPE because earnings have surprised to the upside. So we talk of recession risk but Going to see that recession this year DATE unlikely because equities usually lead economic growth. Talking about economic growth. Of course, we just had these three CARDINAL big misses from China GPE and people are talking about, you know, gloom and doom. There is one CARDINAL chart that we've created and I think it's quite informative. Let's have a look at it. It's the aggregate financing. I need it. You can't spend. It does your production. COVID clothes you done. I can normalise all of those misses. Right. But what worries me is when I see a credit number so obliterated as this in China GPE . Is this a warning on growth for the world? Absolutely China GPE has been an important part of adding to GDP growth in the last decade DATE in the last 25 years DATE . Today DATE when we are seeing this China GPE slowdown is going to impact geography is more like Europe LOC which are larger trading partners. Let's say let's not the US GPE so much Also what we have done for China GPE is we took our overweight off just about a month ago We have been in a fluctuating between to China GPE removing it because everybody has always been conveyance that Asia LOC is the growth path forward. How do you change? I mean, are you honestly changing as often as that in terms of your conviction? Is it that It's not Every 324 months DATE , I won't say every month DATE but we keep thinking that you know China GPE is going to provide that upside and then you have China GPE grocery down, you have the SEC ORG cracking down, you've got many China GPE listed companies in the US GPE now, you know, being taken off the US GPE listings, you know, the government, entities It's like dating in Dubai GPE . Holes and and disappointment. No in terms of valuation and attraction. You're talking about the S and B 54100 PRODUCT . Taka PERSON 's had the most blistering rally, hasn't it? So, the whole gross narrative has I was there been refused up what 50% PERCENT from the lows that it met in January DATE . I'm talking about the Naz. Yes. From the lows in to It's hot is it? No, sorry. I'm I shouldn't be so subjective. Is it difficult for you to be bullish on growth? In and not finished fed hiking cycle We have never actually stopping bullish on growth. So, I don't think that anything new. So, part of our, you know, equity strategy, a calls have always been around Been never ever took the overweight of technology all that we said was look at select subsectors and we have in fact a huge call right now on electric vehicles seeing the global warming is going seeing you know the new bill that's been passed in the US GPE in centres being given whether it's Europe LOC so while you have oil prices going up Supply PERSON is becoming an issue. We think that focus on electric vehicle is going to go up more. Nothing has changed in terms of companies, adopting technology. Now, I know you don't name names as it were in terms of what you're buying but let's just extract it. Look, I have, I had lucid motors on the other day DATE . Right. Based inside the Arabian NORP , a lot of the headwinds is is the the access to Yeah. Cars the batteries at Orange Deep LOC . Commodities is is it the
Cars the batteries at Orendee producing. Commodities The supply chain into that is that how you dissect that major bullish call on EV ORG . Absolutely, we look at the manufacturers both light vehicles as well as trucks. We look at the back manufacturers, you look at the Of lithium. You look at the people who are putting up the infrastructure. So, it's a mix. I wouldn't Economic research teams outlook which is an oil at about $115 MONEY you know this year so I think we're gonna keep fluctuating on that again you know a Below 100 right now but with what's happening in Europe LOC and Ukraine GPE and you know what Russia GPE supply of gas. It won't be surprising if oil does bring back a little bit in in winter DATE . Okay. To 115 CARDINAL . Or you're always good with the sport. On on the course. I need a thank you very much. Rolling. Rolling with the punches. I need a cup to that. Ahead of that could eat strategy for Emirates MVP ORG . My guest on the market. It's coming up on the show. Seven CARDINAL major Wall St Banks ORG reporting. They have begun offering to facilitate trades on We take you through it right here on Bloomberg PERSON . When US GPE inflation numbers are released. Terminal speed. When do we get back to boring inflation Economy like Bloomberg PERSON your global business authority. There is an epic saying in Italy GPE when it comes to family generations that the first ORDINAL generation creates the second ORDINAL generation expands and the third ORDINAL generation destroys And that's almost what happened in the Gucci PRODUCT story. Now experience about The Gucci PERSON family was the strength but also the weakness of the label. The situation became dire with Gucci PERSON 's finances. They were not able to pay salaries. They were not able to pay suppliers. Gucci PERSON 's really teetering on the brink at this stage. So that's what we're doing. Portfolio. You know a portfolio for generally speaking for most investors would would make sense because at some stage your bond market will make a campaign. We need to give it some more time. There may be better ways to go in 60 40 DATE but I
Or generally speaking for most investors would would make sense because at some stage your bond market will make a campaign. We need to give it some more time. There may be better ways to go than 60 40 but I think it's a base case. It's still makes a lot of sense. Probably close to final 10 CARDINAL . I actually think they're increasing it pretty dramatic to you at the moment is is they're looking for Going outside into other real assets, real estate, private equity, private credit, can can be a healthy addition to the portfolio and really help diversify your return because 60 40 DATE as I mentioned has been a challenging portfolio construction exposure to have Let's get the first word news with Jules PERSON . She's with me in Singapore GPE . Juliet Sally PERSON . Hey man it's water levels in a key way point on the river are expected to steady at an extremely low level this week DATE adding to Europe LOC 's energy crunch many bargains can't transit past the market a point west of Frankfurt GPE where the water level is below 40 cm QUANTITY According to government data it's already at about 35 cm QUANTITY and is set to drop to 30 cm QUANTITY today The UK GPE 's opposition labor party has proposed extending Britain GPE 's win for tax on oil and gas company's to find a total freeze on energy bills over the winter DATE the plan to be announced by leader Kia Starba PERSON later today we'll put renewed pressure on the government to act analyst predict the Annual DATE household energy bill could top 4200 CARDINAL lb by January DATE . Is starting to recover 2 days DATE after being stabbed did a lecture in New York AP GPE has quoted his agent saying the author is now on the road to recovery Russia GPE is said to have been removed from a ventilator on Sunday DATE and is now able to talk the author of the satanic versus suffered serious injuries on Friday DATE after being stabb Multiple times shortly after taking the stage. Global news 24 hours TIME a day on air and on Bloomberg PERSON quick tape powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries this is Bluebird Manus FAC . Jill PERSON thank you very much Julie PERSON . Latest headlines. So several major Wall St banks have begun to offer to facilitate trades in Russian NORP recent days DATE . That's according to a report from Reuters ORG . Eh citing the banks. Documents and unidentified people. Let's get a Contacts around. There's Paul Dobson PERSON is with me. I saw the headline, Paul. And immediately in the chat, we were discussing, wow, okay. So, we've got sanctions on going but Russia GPE bomb trading starting again. Can you just square that up for me? Yeah, very much. So, so, it appears, you know, this is from, from, from where we understand talking to the banks and from the Royce ORG 's reporter as well, that this is all about facilitating closeout trades for customers that have been stuck with that Russian NORP bond position for for several months DATE already, you know, either long, wanting to offload the more short And you know you couldn't needing to close out that trade as well so it seems that there's been some shift The permissions that are being granted by the US GPE government among others in order for those banks to come in act as brokers, act as the middleman, to their to to be able to get those kind of parties that are that are stuck in these situations back to back to level peggings. So it's not about bringing back speculative trading in Russian NORP bonds. It's not about reinvigorating the market or anything like that. They're purely about kind You know In the customer's interest to try to get them out of the situation that they found themselves in when the sanctions came down earlier in the year DATE . I suppose the question is what's in it for the banks? I know obviously writing tickets, earning commission, been able to probably I can only imagine salivating spreads given that this is a distressed cellar and a tough market with very few options on where to go to so I can only imagine this is just monster spreads. I guess there's some element of that but more than anything else, it seems like, you know, from from the comments that we have from Jeffrey PERSON 's last week DATE . It's about, it's about working on behalf of the customer, right? And doing them a favor in a way, helping them out of this situation. So, about that retention of customer relations cuz the banks know that ultimately is not great for their reput To be seen dealing with the Russian NORP bonds are at a time when you know a lot of a lot of the market is kind of untouchable but it's really about you know making sure that the customers can can can flatten their positions at the very least and come out of it. So I don't think we'll be thinking that the the broker dealers are are looking to make a huge amount of money.
About, you know, making sure that the customers can can can flatten their positions at the very least and come out of it. So, I don't think we'll be thinking that the the broke Adidas are looking to make a huge amount of money in commission out of this in the end but more about kind of you know, being there for the customer that hour TIME of need. On Thursday DATE I suppose I go back to back to basic principles which is distressed sellers and I've yet to meet a generous broker in my life Paul PERSON thank you very much Paul Dobson PERSON having been one Paul Dobbs PERSON and thank you very much with the very latest there on the situation with reducing your Russian NORP exposure quick snapshot HSBC ORG will with me this morning TIME . They said, look, they look a global LEI ORG 's leading the economic indicators. And the LEI of the LA GPE eyes for them is broadening. There is a quantum of misery Across the world as three CARDINAL major pieces of data in China GPE Miss Industrial Production retail sales and fixed investment also the credit impulse is declining so this darkening China GPE today DATE and get the latest on the story on the Ray Cuts FAC by the PBOC this is Bloomberg PERSON In this episode of Bloomberg Green PERSON we're focusing on extreme weather Will explore the science behind the recent heat wave. The consequences of extreme weather there is overall low awareness that heat kills Until recently there's not been as much effort to try and educate people about the dangers of heat. Solutions for the planet to mitigate and adapt. Government to lead on this and we need government to And stop sending things out I'm Kaylee Lynes PERSON from Bloomberg ORG 's Global headquarters in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend DATE on Bloom TV ORG quit take ants online Hey Facebook Hey Facebook It's they break you up on men's granny in Dubai GPE with the stories that set your agenda. Miss the forecast And bond use slump. 532 1 million dollars MONEY a day. That is the daily DATE profit of the oil producer Ramco NORP in the second quarter DATE . After visit by Nancy Pelosi PERSON spurring China GPE to launch its most aggressive military strikes military drills in decades DATE . Warm welcome to the show quick snapshot of equity markets drifting lower on the back of this missing the Chinese NORP data
Drills in decades DATE . Warm welcome to the show quick snapshot of equity markets drifting lower on the back of this missing the Chinese NORP data HSBC ORG warning this is an ominous sign for global markets in terms of the slow down the propensity for slow down around the world so there is a definite Across these markets. January DATE lows at a great deal of skating let's say Dennis Gartman PERSON saying there's Much longer. He or she who loses the least will be the winner. By the way, back of America GPE , the flow show, US GPE stocks took in 11 1 billion dollars MONEY last week DATE . The biggest in 8 weeks DATE . The Dax GPE is up by quarter CARDINAL one% and you're upset for a slightly higher opening. Let me roll it over. Have a quick look at what's going on with the barn markets. Richmond GPE fed present, Thomas Barkin PERSON , still on certain About whether you go 50 or CARDINAL 75 CARDINAL basis points but certainly that 100 CARDINAL basis point narrative seems to have been exploded off the market use rise HSBC ORG again say to us this morning TIME on this rising years add to develop market bond exposure 9 weeks DATE time by over one% ORG and iron or reflecting the unease or disease on the Chinese NORP Economy are done by 1:74% PERCENT . I can tell you the iron or is gonna lose altitude. They still makers making the least amount of steel since 2018 DATE . A bitcoin gets a bites. Will it last? 24 1000 CARDINAL . You know what? Call it 25 1000 CARDINAL for cash. It's up two% ORG . No. The PBOC unexpectedly cut its key interest rates. This to ramp up the support for the economy way down by COVID lockdowns and a deepening property slump for more let's bring in our chief Asia LOC economics correspondent it is end the current and eh this Term lending facility cut. You know what that was the reaction someone would say to to a backdrop that's tough. How tough is it in China GPE at the moment given the date that you've looked through? It looks to be pretty tough minus a weakness across the board in July DATE retail sandals down more than expected industrial production down more than expected even though exports are holding up Investment weaker, especially private sector investment on the housing side of things, new home sales, new home prices, housing investment, all weaker and that's why the Central Bank ORG took the surprising decision that I did this morning TIME to lower one of its Key LOC interest rate really hadn't made that move since January DATE and while that moved by the Central Bank ORG in and over itself isn't going to be a game changer because the problem in China GPE isn't the cost of boring per se it does speak to the how serious the authorities Reviewing PERSON things right now that they are pulling these levers. I'm trying to put a floor under demand. Where they can. So the other we take away would say is all of us data was weak but the reasons especially considering is because July DATE was meant to be the good month DATE . July DATE was meant to be the month DATE when things pick up a bit of a momentum again. They third quarter DATE was supposed to be better than the second quarter DATE and all the rest But of course this now underscore is just how much pressure China GPE 's economy is actually under. I'm just getting some notes into the inbox from from Martin Malone PERSON or add oral basically saying Next ORG rate hike in the US GPE you're gonna have this crossover between Chinese NORP rates over US GPE rates and we haven't seen that in a decade DATE and that may well have AA big currency impact but the policy response that you've seen so far given what Martin PERSON is saying here do you think it's going to be a again accelerated Accelerated easing in these key interest rates I'm alive. Well, this is the big talking about manners. How will the authorities respond from here? You mentioned essential bank side of things. A lot of economists said today DATE that move with the MLF ORG is really more but optics like I say that's not going to turn the economy around in in over Give me what's happening real estate. Hm. And giving what's happening with of course COVID oh. The reason to have been reluctant to cut interest rates is to your point that they didn't want to accelerate the flow of money leaving the country, the whole year DATE , advantage story over the US GPE has gone with the Fed ORG heading in the opposite direction that's downward pressure on you on. It means money out of China GPE . They didn't really I feel that I'm fire but it looks like they might have little option now give them move they take this morning TIME I think the bigger focus will remain going forward though less than essential bank and more on the government eh will they delve into their bag of tricks to do two CARDINAL unveil more borrowing more spending
Will it remain going for though less unattended bank and more on the government eh will they delve into their bag of tricks to do two CARDINAL unveil more boring more spending on infrastructure especially a local government level or Eh so I think a lot of folks will be on perhaps a real estate sector and of course a local Borrowing LOC and spending. Well we'll put those questions to my next guest in just a moment for the global economy though and HSBC ORG we're with me Max Katner PERSON was with me a little bit earlier on Saying LOC look this is a nominous sign the LA GPE eyes of the LA GPE eyes for him Are all beginning to trend lower. It feels like that really when you look at the global economy man it's a standard at the moment is really the US GPE economy and in particular the US GPE jobs market because China GPE is certainly not proving to be a dynamite for global growth the way it has been it's not proving to be a dynamical for a recovery in the way it Pass global downturns not only are we seeing this slowdown in China GPE but as we just discussed the authorities aren't coming to the rescue with the major support either and there had been a view by the way that China GPE Be something of a buffer for global growth could put a floor under things but now of course I've used change pretty quickly this morning TIME when people see the scale of the downturn I mean ANZ PERSON talking about what looks like a pretty alarming a slowdown in China GPE 's economy for non about suggest China GPE will be Much of a pillar for global growth going forward and the other side of it by the way is weakening external demand for Chinese NORP goods. A lot of producers and manufacturers in China GPE have been worried and complaining for some months DATE now that their order books are looking weaker. So it looks like the external story might come off to boil. Take the shine off Tray ORG boom just at the same time that the domestic story is obviously a crumbling on a weight of the property code and I cover oh so when when you take it all together it's hard to say that China GPE will be any kind of a pillar for a globally normal recovery in the way it has been in past downturns. Okay certainly it sounds pretty gloom laden that reflection Eda PERSON thank you very much and the current Bloomberg NORP Chief North Asia LOC correspondent joining me now is my guest on this Jinny Yan PERSON Chief China GPE economist at ICBC standard bank ORG two CARDINAL economist back Surely we will have a different opinion Jinny PERSON good to have you with me Use language there from one of the hoses and said saying that this data was alarming and it's slow down A are you alarmed and B could it be if I'm optimistic could it be a near term low in the data Wolf PERSON good morning and thank you for having me. I think I'm usually very optimistic but obviously this set of data does really highlight this severity of the challenges ahead particularly for a China GPE second ORDINAL largest economy and Also a global consumer of commodity. So clearly there are some sentiment there to be aware of. However the contact is very important. That's where we agree with ND ORG your previous speaker. In that Given to domestic and external challenges the current set of data does really highlight that it's not really just about the fact that China GPE is slowing but expectations are very high for that quick recovery that we used to seeing in China GPE but that might not come as quickly as in previous Cycles. And and that's the risk isn't it? You know a target no longer a target I five and a half percent DATE growth from the authorities. It is guidance Given the data that you've just seen and aggregate financing at the lowest level put it into the GTV library aggregate financing is at the lowest level since 2017 DATE and that's maybe the more worrying point because because they that the alpha for credit and the system is waning And will it cross over into 2023 DATE ? Well the question here really is just how much this oh COVID policy will continue how much longer We know it's
Well the question here really is just how much this oh COVID policy will continue how much longer we know it's here to stay for a while and that's why we're having this uncertainty particularly in terms of outlook for the economy And that's why manufacturers and also services sector are Wait pessimistic when it comes to boosting their production. On the retail side particularly that could domestic consumption picture is particularly worrying. And couple with the unemployment situation we had another record number in terms of youth unemployment this month Again. And so lots of data sets there to really keep policy makers really concerned about the outlook but also Us GPE hope that probably a basket of measures will be there to to really boost sentiment and and we're ready talked about it. The PBOC this morning in terms of that unexpected the short term rate cut is really a signal of what's to So potentially more demand boosting policies to come I'm really we've had a huge amount of credit and fiscal impulse and that will really be with us for the next 6 months DATE but Enough that is really the question. On that fiscal leather that they pulled I know that you you believe that there will have a front loading of special bond issues is that going to be an integral part of that front loading? Already seeing record project starts so we're seeing really the peak of those special bond instruments is actually been spent into investment but it Coming quick enough I think in June DATE we saw really early signs of that recovery but that's on the back of End the Shanghai GPE lockdown but we're having other cities entering a small size lockdown. So, that is really weighing on sentiment. Both consumer household as well as businesses. So, really to get Suspending PERSON . You need to have some level certainty. And obviously that's a dynamic COVID oh policy. It's not helping matters. So I would expect that more demand bursting measures will be outlined in the coming weeks DATE and months DATE . Okay well let's see what those what those demand measures are Jinny GPE thank you very much Jenny Yan PERSON chief China GPE economist over at ICBC I wanna reflect on the global market map in terms of the narrative from Ginny PERSON and from Eda PERSON and you can see it very very clearly in the effects column and in the sovereign bong column Chinese NORP government bonds in China GPE Don Bay over six CARDINAL basis points Deviation move in terms of that you are seen an outsize move on that and reciprocated with that drop in yield across the car then China GPE you are seeing the remember offshore etcetera declining as well and the the move by the PBOC A surprise rate cut across the MLF ORG on the 1 year DATE and on the 7 day DATE repost you are just seen at the expectation for more managers and what will that do now of course if you hold in on the commodity at Copper Recovery ORG is Ginny is Let's get across to Julia Sally PERSON if I can draw a breath she'll save me let's get into the first ORDINAL word used with chills I got your water levels in a keyway point on the Rod River LOC expected to steady at an extremely low level this week DATE adding to Europe LOC 's energy crunch many bargers can't transit past the marker at a point west of Frankfurt GPE where the water level is below 40 cm QUANTITY To government data it is already at about 35 cm QUANTITY and is set to drop to 30 cm QUANTITY today A US GPE congressional delegation landed in Taiwan GPE on Sunday DATE for a 2 day DATE visit they're set to meet with Taiwanese NORP President saying when and other lawmakers the trip risks keeping tensions with China GPE high after how speaking Nancy Pelosi's PERSON recent To the region. Japan GPE 's economy recovered to its pre-pandemic size in the second quarter DATE with growth
China GPE High after how speaking Nancy Pelosi's PERSON recent visit to the region. Japan GPE 's economy recovered to its pre-pandemic size in the second quarter DATE with gross picking up after COVID curbs were relaxed GDP grew in an annualized pace of two CARDINAL . Two% below economist median forecast of two CARDINAL . Six% consumer spending which accounts for more than half CARDINAL of Economic output led the growth Will tribute supporting in from Wall St and beyond for Andrew Jane PERSON they can't talk it's And former Deutsche Bank ORG co CEO Death at the age of 59 DATE was announced on Saturday DATE after a 5 year DATE battle with cancer. Been credited with building Dorture Banks ORG investment banking business and turning the German NORP lender into a global trading powerhouse Global news 24 hours TIME a day on air and on Bloomberg PERSON quick tape powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries this is Bloomberg PERSON manus Jules PERSON , thank you very much. Singapore GPE . Coming up on the show. Study Iranco posting the biggest quarterly DATE profit of any listed company. The details this is Bloomberg PERSON . So what's the best investment advice you've ever been given by anybody? Pound interest. The compounding of returns is an incredible miracle of business finance and human existence Everything you learn is additive everyday and if you keep at it and don't quit It's an incredible miracle and it's and it's not just interest it was it was always said about compound interest returns Compound business returns compound human returns They're all very active cuz you'll learn every day and if you keep at it it's very very Super helpful. In your observation of investors, what do you think is the biggest mistake that average investors make selling at the wrong time? And they sell when the prices go down? Yes, or yes. Not keeping. Look, people have conviction Or the investor if they invest for the right reasons that just keep at it. Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE . Bloomberg PERSON 's Amanda ORG It's day break Europe LOC this Monday DATE morning TIME I manage granny in Dubai GPE we've had the Sadi Iranco ORG numbers posting the biggest quarterly DATE adjust to profit of any listed company ever driven by high crew prices and production meanwhile a Exchange ORG funny shows Saudi Arabian NORP billionaire Prince Alwali Bentalal PERSON invested more than half CARDINAL a one 1 billion dollars MONEY into Russian NORP firms around the time of Moscow GPE 's invasion into Ukraine Bringing GPE our Middle East LOC energy markets reporter Anzi Depala PERSON at returns as fresh from America GPE whole new perspective on the oil markets. How are you? Good to have you back. Good minutes TIME . Thanks. Good to see you again. So, look. Leverage under control production on the other Good news day at Aramco ORG isn't it? Yeah with the oil prices where they've been over this first half of the year DATE . It was clear that this
Leverage under control production on the it's a very good news day at Iranco NORP isn't it? Yeah with the oil prices where they've been over this first half of the year DATE it was clear that this quarterly DATE profit was gonna be huge. We saw that from some of the international oil companies that reported before Ramco NORP and at Ramcos Had some of the biggest profits in the oil industry. So, it was clear that they were gonna have this huge, these huge numbers. They've been slightly beat estimates as well. So, that's also positive news for them. Kept up the dividend and and they are paying that down that some That. Let's remember there's still paying off Purchase of Sabbak ORG the Saudi NORP chemicals producer which they bought from the public investment fund and they're still paying that deal off at because they staggered those payments so they're working on that. They did make an acquisition in the quarter DATE buying Valvoline ORG 's fuel business. So, they're expanding in different areas but a lot of that cash is gonna be pumped into Production and that's their their main thing is they're seeking to increase capacity. I mean they're bringing down the gearing which Earlier and she said that the toggle was five%. They got it done to seven CARDINAL . Two%. So this is AA progressively good story Has impact on dividend story. Yeah, they're working on that gearing but they've also kind of taken their foot off the gas on that as well too. Around the time of the IPO ORG and shortly thereafter, they were really focusing on that. As these big numbers started to come in, this CFO ORG in recent quarters DATE has has kind of taken the focus off of that as such an urgent Matter PERSON right now. So, they are working on that but as you said, it's gonna be something gradual as they reduce that debt but they're gonna focus on a lot again on that investment bit and and on keeping Numbers ORG in shape as well man Which is by Prince Wallid His name Drawers ORG , eyeballs, and readership, but this is interesting cos it's a round what he invested in and around the timing of it. Yeah. Send a number of Russian NORP energy companies in February DATE the timing the exact date whether that was before or after the Russian NORP invasion of Ukraine GPE was unclear from the fire lines that we saw but he did put some some money into that along with some other companies so it's a question you know does he still own those securities does he not we we know that Hey So maybe he saw a potential bump there if there was no invasion that the value of these Russian NORP securities would have gone up of course there was the invasion that didn't but we did see Saddy Arabia GPE stand by Russia GPE not really throw them under the bus immediately when allies like the US GPE and the Europeans NORP condemned Russia GPE So there is that kind of link between Saddy Arabia GPE and Russia GPE on that economic link a lot of endless and and we're questioning you know what this Saturday DATE we really have to gain from Russia GPE because there's not a huge amount of investment going in we see kind of that the same thing with this investment A princess tell out we've been to put that money in. Yep. The value of the security is going down since then. So we're not sure what he's gonna be getting out of that. And we understand product as well as flowing from from Russia GPE into the UAE as well from from Russia GPE . So you know what I I think I think the assessment And his royal highness which was it's a European NORP war. It's not ours. Yeah, they don't wanna get there put their fingers into that and really get into that but there's really an issue that Russia GPE isn't Opec Plus with the saddest, with the UA ORG , they wanted to make sure that the Russians NORP were with them in a down market. Of course, the Asian NORP has rejection as a You know there's a wonderful May 1 DATE . I think we'll leave it there of course the Iranco NORP numbers come in Valerie Titel PERSON , the queen of Charles sent me a number. Shell Chevron ORG excellent total in total 62 1 billion MONEY between them. Just leaving them in the dust there with a ram cup. At 48 CARDINAL . Very much Anthony Anthony PERSON . I made the least energy and markets reporter, Anthony Department ORG , returned from his great American NORP road trip. Coming up in the show, UK GPE 's opposition, labor party, proposes an energy price cap freeze as the country faces the worst cause of living crisis in decades DATE . More on the story here on Bloomberg PERSON .
A digital first ORDINAL approach to the future work is where the industry and all companies will be heading. Metaverse. Immersive experiences that have a sense of active presence. This. One 1 trillion dollars MONEY market by the end of this decade DATE . And whether you know it or not you'll probably be working there in the future. Removing into a world where we're gonna be interacting with computers with our bodies. Definitely trippy. I think the adoption curve is gonna be slow. It's weird. Thing right now. Oh, look at you. If you have no legs. It's day break Europe LOC by Menice Crenny PERSON in Dubai GPE let's have a quick look at the UK GPE now the main opposition Labor Party ORG wants to extend Britain GPE 's Winfall tax on oil and gas companies with the proceeds used to fund the total freeze on energy bills over the winter In terms of the energy The energy solution. Let's get to Lizzy Boden PERSON . She's tracking their story for his Lizzy PERSON . I mean, you had all the all executives meeting last week DATE . There's a much derided meeting but Kier Stama PERSON , the head of the Labor Party ORG has come out. What has he had to say? Yes Manus PERSON this is really care stormer responding to the criticism that there's been a policy vacuum you know you've got a lame duck prime minister we're not going to know who's the next conservative leader until September DATE the fifth ORDINAL and even the former prime minister Gordon Brown PERSON has been telling us what he would do if he were in charge. So this is Kier Starmer PERSON setting out his plan to continue the windfall tax which remember was originally Labour ORG 's idea and the conservative And you can see why it would be popular when remember these a ramco profits are symptomatic of what the energy giants have been raking in through this crisis And obviously strikes not just port workers but It's gonna be a pretty tortured week. Yes exactly not just the transport workers not just the barriers but also the doctors too now threatening to strike Let's trust the front runner to be the next conservative leader has said that she wants to control wages to avoid stoking inflation it's a hard argument to When the public sector hasn't the same power to set prices but we get the jobs and inflation data next week DATE both set to show the power in is in the workers hands. Ok let's see how those strikes affect the real economy Lizzy PERSON thank you very much Lizzy Burton PERSON in London GPE more ahead on Bloomberg Markets Europe ORG Right?
The standard wave adventure from his work is you commit capital let's say over a 5 year investment period something like that And then the fun maybe 10 years or so 15 or these days DATE longer so often 15 CARDINAL often the tail extends up to 20 years DATE of these companies take one a long time ago can somebody that invest in a venture fund today DATE should be trying to get rates of return of 20% PERCENT would you say or more you know top adventure or sort of three CARDINAL action fees you know you ideally you're hoping for more than that For five CARDINAL extra more you know you you're really liquid the entire time right so you you hope to get paid for the liquidity and today so yeah maybe to a 20 to 40% PERCENT if if if This sort of baseline. Let's take another subject. It's such a post. Somebody says, I don't wanna invest in Andrews GPE and Horwitz PERSON . I wanna be Mark Andreson PERSON . How does somebody become a venture capitalist? What are the skill sets for good venture capitalist? High degree of intelligence, hard work, lot of luck, dress the right part, don't wear a tie, what are the things that make one a good You know people from very different Mike Morris PERSON is a former newspaper reporter John Doris PERSON former ship salesman you've got people with very different digital this kind of blue chip investment background you have people with very different backgrounds and experiences and so I I think it's it's some set of skills and some set of knowledge and then it's there there seems to be a taste component to it that's that's really hard to measure and Heard to predict. Why did the biggest names in business choose Bloomberg PERSON ? She's a great question. Great question. Bloomberg Green PERSON bringing you the business data and innovators fighting climate change. Reinventing climate news on TV quick take ant Bloomberg PERSON . Com. Well, good morning everyone and welcome to Bloomberg Markets Europe ORG . I'm Francine Laquat PERSON live from London GPE . Now, the cash trade just less than an hour TIME away and here are your top headlines Surprise rate cards China GPE unexpectedly lowering cost as retail sales and industrial production this forecast and bond yields slump 532 1 million dollars MONEY a day. That's the daily DATE profit of oil producer Saudi Oranca PERSON in the second quarter DATE . The most ever by any listed company And investors look to this week DATE 's fed minutes FAC and speakers including Esther George PERSON and Neil Kashkari PERSON what clues will they offer on whether the FMC ORG will go big with hikes next month DATE So we're just under an hour TIME away from the start of cash I could be trading in Europe LOC but first ORDINAL of all Unexpectedly cut rates China GPE and Hong Kong Kind GPE if you look at Europe LOC but futures they're actually on the app but then US GPE futures are dipping. Some of the things we're watching is definitely Chinese NORP bond deals. The offshore. If you want and on energy, we also have quite a lot of water levels at the rind dropping to such low Transported so we'll have a look at that so you can see a bit of pressure on the Nasa ORG futures and the doubt joins futures overall this is a picture across
Transported so we'll have a look at that so you can see a bit of pressure on the Nasdaq teachers and the Jones PERSON futures overall this is a picture across assets so we Currencies ORG we of course look at commodities when you look at what's going on with the Rhine River LOC and the fact that we talk about this shortage of fuel day in day out of the move where the illustrates how global gas markets are Remarkably ORG tight that even as seemingly small disruption in your blacks they were verbabrate across the world you can see the Australian NORP ASI skins oh. Five% but then Indonesia GPE . Of eight% to AA really looking forward to full round up of of course what's going on in China GPE the biggest surprise today DATE with 67640 DATE . So, China GPE 's economic recovery unexpectedly weekend in July DATE . As fresh COVID outbreaks, across the country, weighed on consumer business spending including the global outlook and prompting the central bank to deliver a surprise interest rate Now for more let's bring in our Bloomberg GPE Chief Asia LOC correspondent he is undercurrent and a great to speak to you so what's something with the main takeaway from the data today Weakness ORG across the board fancy and it looks like what was meant to be a recovery over July DATE has been fairly short lift lived retail sales were softer industrial I'll put investment where weaker than expected there was more Signs from the housing market as well with boat investment and new home sales and prices are all looking weaker and together all of that data force as you mentioned essential buying to lower its key interest rate that's the first ORDINAL time it has taken that step since January DATE Enough to turn the economy around but it does show you how concerned the authorities are now about where growth is heading and it seems to be the due to prong to hit from the real estate slump. They hit from COVID oh. It's clearly clearly putting a lot more pressure on China GPE 's economy than expected. So and it doesn't mean that policy makers will respond more forcefully. I think that's a big question now Francine PERSON in some ways you could argue to downside surprise in the data isn't that much of AA surprise really give has been happening in China GPE throughout the year Pivot they've been somewhat restrained so far you know they haven't come through rescue with all guns blazing for the property sector we know that eh and likewise they remain very committed to COVID oh all of the official And signals. How many authorities are that? They don't plan to diverge from that. So at some point there is going to have to be a pivot. Probably will be lesser with the central bank and it might be more so what they do around the COVID or what they do with a real estate sector. To enter the we talk about it possible alarming slowdown what does it mean for the global economy? Well, I think it does suggest that in past down turns France GPE , you know, China GPE 's economy has been there. Something of a cushion. It's coming to the rescue with its own stimulus and it's own demand. But this time around, they're really and truly China GPE is in a slump and continu Fall further. It isn't going to be there for pillar for all support for the economy right at the time of course. When inflation and interest rates are dragging on the global growth story. And if anything by the way itself From that global slowdown because there are signs that it's export boom. It's coming off the ball. So, I think taking it all together net net. Please, China GPE data story. Doesn't point you a very robust global outlook either. And thanks so much as always Bloomberg PERSON 's Chief North Asia LOC correspondent and the current so slowing economy in China GPE leads to a right cut from the PBOC how surprising was a cut while 20th ORDINAL economist pulled by Bloomberg PERSON at forecast the rate on the 1 year DATE medium ter Facility ORG would be left on change. So here was the reaction to the data from investors this morning TIME . The set of data are not exactly very pretty. Perform very strong. This morning TIME seems to be suggesting policy makers are concerned and they want to make a gesture 10 CARDINAL basis points that is almost like not a big deal right it's a small gesture but at least it shows that they care we're going to see continuous diverging performance across industries those policy tailwind sectors like infrastructure man Much strongly. To three% GPE growth in the Chinese NORP economy. Ping gets through the 20th ORDINAL party congress ORG . This October, November DATE , will there be a course correction on the economy or
See two CARDINAL to three% growth in the Chinese NORP economy. Who wants Xi Jinping PERSON gets through the 20th DATE party? Congress ORG . This October, November DATE , will there be a course correction on the economy or not? Well joining us now is the STD ORG flow bank chief investment officer SC when you look at some of the sharks that we're seeing from the Chinese NORP economy what's it mean for global investors? At the moment markets are really shrugging off all of the disappointing news and focusing on the fact that the US GPE seems to have finally started a period of disinflation that a number of different data points throughout the month of July DATE or for the month of July DATE have shown us that this is Probably we won't find out much more until the end of September DATE but at least there's this feeling that the worst of the inflation picture in the US GPE Over unless we discuss earlier you know talking about the Chinese NORP economic outlook if China GPE is slowing and isn't going to pick up very much then investors really need the US GPE to hold up So SC is there a concern though that the market is actually focused so much on the fact that we have pick inflation the US GPE that they're not pricing in the possible interest rate hikes to go get to that two% ORG target I don't I Became a little bit too consensus and the fat has been pushing back against that and we have to just keep in mind that the University of Michigan 5 to ORG 10 year inflation expectation Barely but didn't continue to fall Three% GPE I don't think you could call that an anchored but the Fed ORG is going to look at those medium to long term inflation expectations. Now whether we get another 75 CARDINAL basis point hike in September DATE we're just 50 CARDINAL is a question mark but beyond that I think what investors are feeling reassured about today is that the more aggressive part of the tightening cycle is probably behind us but it Mean that the red hikes are going to end for now. So but I see given what you're saying on inflation in the US GPE and what we're seeing in China GPE what's your take on Is there is there a dollar or a nimbica that you have? Well we've you know depending on the inflation numbers that we see in the next couple of weeks DATE we could have another move higher in yields especially if there's a feeling that growth holds up and that inflation probably isn't completely done surprising us it's The US GPE dollar weakening very much from here they're really is still that interest rate differential support there's that growth and earnings differential that's supportive as well and of course if we start to worry about growth Then some of those safe haven flows could come in but we've probably seen the bulk there and then for China GPE Probably something around range trading from where we are a little bit of commitment from the policy makers there to help but how much they'll go is is really the big question now. I see it's very clear that the concern in Indian NORP energy market what we're seeing was the Rhine River LOC just shows how tight that market is do you invest in some of the energy supplies and how does that match up with some of the of course ESG wrap around so we've been talking It's it's it's been a difficult question for investors and obviously the the lack of natural gas and the risk of shortages means that some of the dirtier fuels are back in fashion at least from an economic perspective for for growth right? It's still not very fashion For investors. We've had some energy companies since late last year DATE . So, really unrelated To to to the invasion of U Court ORG to the war in the Ukraine GPE we've taken a lot of profit there we think that now we're seeing prices come back down a little bit but they should probably stay above this 80 to 90 dollar MONEY per barrel level which means that energy companies Potential to to catch up to those oil prices before the situation so we still have some of those You have to keep in mind that some of these oil majors are also some of the biggest Energy investors as well so it's not always as black and white as we'd like
Hey Facebook you have to keep in mind that some of these oil majors are also some of the biggest Energy ORG , investors as well. So, it's not always as black and white as we'd like would like that answer to be. And certainly thanks so much. Talk a bit about earnings for early coming up black gold posts the biggest quarterly DATE profit of any listed company ever will have the details next plus we'll look at the role of nuclear and what role that will play in your synergy crisis we'll be joined by the chief executive officer of nuclear industry as That's a little bit later on but up next we're on the markets with If you have any questions to any of our guest please send them on to us on IB Plus TV ORG go this is Bloomberg PERSON . There is an epic saying in Italy GPE when it comes to family generations that the first ORDINAL generation creates the second ORDINAL generation expands and the third ORDINAL generation And that's almost what happened in the Gucci PRODUCT story. Now I would have been watching my experience about those who says I love you and dentistry. The Gucci PERSON family was the strength but also the weakness of the label. The situation became dire with Gucci PERSON 's finances. They were not able to pay salaries. They were not able to pay suppliers. Gucci PERSON 's really teetering on the brink at this stage. Our customers, vehicles, you know, that are their primary vehicles that are EVs and be able to do that. We need to have range and infrastructure and we need to remove the pain points and so that's what we're doing. Portfolio for generally speaking for most investors would would make sense because At some station one market will make a comeback. We need to give it some more time. There may be better ways to go than 60 40 but I think it's a base case. It still makes a lot of sense. Be close to final 10 CARDINAL . I actually think they're increasing it pretty dramatically at the moment as is they're looking for Going outside into other real assets, real estate, private equity, private credit, can can be a healthy addition to the portfolio and really help diversify your returns because 60 40 DATE as I mentioned has been a challenging portfolio construction expoure to have The debate there are over whether it's time to put the 60 40 DATE portfolio strategy to rest or not continues now those were some of the responses to our end live pulse survey question last week DATE let's continue now the markets conversation with the Investment officer I see I have a couple of questions of course on your biggest convictions but first ORDINAL of all the 60 40 DATE is a dead and does it ever come back? You know as as a lot of your other guests have said you can't Throw away decades DATE of valid benchmark on a couple of months DATE performance or not I think we're starting to see more and more that you need more than just equities and bonds in your pool.
Benchmark PERSON on a couple of months DATE performance or not. I think we're starting to see more and more that you need more than just equities and bonds in your portfolio, you need alternatives, you need commodities, you need to real estate, you need crypto, in some cases, there's a lot of other things really to kind of Fill the gap from some of these traditional asset classes but it does remain an interesting starting point for a lot of conversations within investors and it's often what they think about as a first ORDINAL step when they're building Portfolio. I see I know amongst your conviction calls you'll still have tech which is surprising to sound surprise not surprising At toddlers why do you still like to give in all the swings we see and that's face I think there are couple things to keep in mind. One, we like the tech sector, but I think you can be even more differentiated within that sector, because we have some clear companies that are almost safe havens. We have some that have really shown the sustainability of that earning And that's the main reason why we like tech. We think the time and time again those earnings continue to come in. They continue to grow and there's a confidence that investors can have in the future path over there. Again, more differentiation because not everyone is growing in the same way. But we're really started to see it ready from June DATE a little Performance in the tech sector and it does seem that it is leading the markets higher. Now, I'm not sure the straight line up. We've seen over the last 6 weeks DATE or so or 8 weeks DATE is going to continue. We'll probably get some periods of consolidation or another scare in the market. So, some point but it is starting to feel Like those june lows might hold and I do think tech is going to be part of the opt performance later into the year DATE . Were you surprised that a lot of the earnings and the the earning season actually overall helped much better than I expected and is Of lagging effect of what we're looking at. To some extent there is we have seen that there were couple data points there in the second quarter DATE in the US GPE that started to show some cracks in the economy and then it feels that the growth outlook is actually holding up better as well so earnings should be able to hold we've also And maybe a better ability than expected for a number of companies with pricing power and we saw that luxury segment really hold up those higher wage consumers continuing to spend we know that the savings rate has dipped somewhat and that we have to keep an eye on because There's changing spending patterns can continue Really speaking It was reassuring for markets but we have seen that companies Us GPE on the outside quarter after quarter DATE so we'll see if it continues but the underlying US GPE economy does feel strong and that suggests earnings should be able to hold up more than we feared. Do you expect this rotation into European NORP cyclicals I see to continue? It's a very tricky picture for Europe LOC and to be honest it's almost been surprising how well European NORP equities have performed given the situation with Russian NORP the Ukraine GPE given the energy situation the cost of energy electricity and food weighing on consumers Clearly a very different inflation picture for Europe LOC than the US GPE so if anything that difficult decision for the ECB and I don't think they're going to tighten quite as much as the market things they will. The growth picture is worrysome for Europe LOC . So how much earnings can hold up and how much confidence Investors are gonna continue to have encyclicals. I think that's a little bit less certain. Ashley thanks so much. Chief investment officer. Now let's get straight to the Bloomberg ORG . First ORDINAL word news. Here's Alice Atkins PERSON . Hi Alice. Morning Francine PERSON . Water levels are the keyway point on the Ryan River LOC are expected to study at Extremely low level this week DATE adding to Europe LOC 's energy crunch many barges can't transit pass them up at a point west of Frankfort LOC when the water level is below 40 cm QUANTITY according to government data it's already at about 35 cm QUANTITY and is set to drop to 30 cm QUANTITY today The UK GPE 's opposition labor party has proposed extending Oil ORG and gas companies to find a total freeze on energy bills over the winter DATE the plan to
UK GPE 's opposition labor party has proposed extending Britain GPE 's winfall tax on oil and gas companies to fund a total freeze on energy bills over the winter DATE the plan to be announced by leader Kier Starma PERSON later today TIME will put renewed pressure on the government to act and let's predict the typical annual household energy bill could top 4200 CARDINAL By January DATE . A US GPE congressional delegation landed in Taiwan GPE on Sunday DATE for a 2 day DATE visit they're set to meet with Taiwanese NORP president sailing and other lawmakers the trip Keeping tensions with China GPE high after health speaking Nancy Glossy's PERSON recent visit to the region. And salmon rushty is starting to recover 2 days DATE after being stabbed at a lecture in New York GPE . AP ORG has quoted his agent saying that author is now on the road to recovery. Rushty is her tab been removed Events later on Sunday DATE and is now able to talk. The author of this satanic verses suffered serious injuries on Friday DATE . After being stabbed in multiple times shortly after taking the stage Global news 20 browser day DATE on air and on Bloomberg PERSON quick take part by more than 2700 CARDINAL 120 countries this is Bloomberg Francine PERSON I was thinking so much else Atkins here in London GPE now coming up said your uncle post the biggest quarterly DATE profit of Any listed company ever or have the details next and this is Bloomberg Bloomberg PERSON brings you crucial data at terminal speed. People are going full risk on. Hey portal it's gonna take Boring inflation. Record setting temperatures deadly forest fires receding rivers in this episode of Bloomberg Green PERSON we're focusing on extreme weather we'll explore the science behind the recent heat wave More extreme than it is now. I'm afraid that's inevitable. The consequences of extreme weather there is overall low awareness that heat kills and until recently there's not been as much effort to try and educate people about the dangers of heat. And adapt. Government to lead on this and we need government to Regulate ORG and and Stop sending me something Bloomberg PERSON 's Global headquarters in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend DATE on Bloom TV ORG quick take ant online It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse Welcome back everyone in September DATE market open and we are about 35 minutes TIME away from the start of cash I could use now this is a For European NORP futures we're actually holding strong some four CARDINAL times of eight% higher again if you look at what features are saying in the Europe LOC compared to what they're saying in the US GPE it's a different story the focus firmly on what we saw in China GPE as well not Asian NORP stocks did pair some games after we had that surprise move
Are saying in the Europe LOC convert what they're saying in the US GPE it's a different story the focus firmly on what we saw in China GPE as well not Asian NORP stocks did pair some games after we had that surprise move from China GPE unex Cutting rates. Now, I was looking at China GPE and Hong Kong GPE stocks. They were declining. The overall picture. We had a terrific briefing from our endocrine Is that China GPE 's outlook continues to darken and that's adding a lot further burden to already falter global economy. Now, Sadiq GPE has Biggest quarter they adjusted profit of any listed company ever driven by high crude prices and production. Meanwhile, a stock exchange filing shows that Saudi NORP Billionaire Prince Bloomberg PERSON 's Middle East Synergy Market LOC reporter Anthony DePalo PERSON joins us now thank you Anthony PERSON for joining us first I said your uncle did so so well is it just an automatically Translation to higher all price. Good morning TIME , Francine GPE . Yeah, clearly the oil price was a big factor here in in really juicing these earnings. They came in slightly above expectations that Positive for rent as well. One CARDINAL thing that we've seen also that that helped those was the downstream earnings that's been kind of a trend even from the last quarter DATE where downstream has been improving their results. This quarter DATE they increased their profit by something by 176% PERCENT . That's because of Quicker ORG increase in the price of fuels and that big demand for transport fuels as economies came out of the came out of the pandemic so that really did also help along with higher production and So I think what are they doing with all the sexual cash Yeah they're gonna be increasing investment so they are gonna be putting about 10 1 billion MONEY a quarter in into into investment this year DATE a lot of that is going to increase capacity To expand their production capacity from 12 1 million barrels QUANTITY to 13 1 million barrels QUANTITY by about 2027 they're gonna do that in increments so that's coming on in a lot of that is going into crude oil production they're also looking to know the things like hydrogen ammonia different fuels that will help in this transition away from oil however this saturated CEO of Minaster ORG does say they continue to see oil production excuse me oil demand group to continue to grow through the end of the decade DATE so that they expect to help to underpin continued growth racing So Anthony PERSON what else are investors looking for to to hear from management in terms of what they plan to do in the future? Yeah, there could always be questions about the dividend. They did maintain the dividends and they'll say they'll keep the same dividend for the next quarter DATE . So that that there are always gonna be questions about whether they could increase that especially with bumper profits like this. Far we haven't seen signs out of the the kingdom or out of the company that they do wanna increase that activity and they wanna stick with that which is already one CARDINAL of the world's biggest dividends dividend payouts anyway in terms of debt they they've kind of they're continuing to cut the debt but they've slowed the process there that's not such a priority anymore so we'll continue Where is the development on this capacity and the production and whether they are gonna be able to keep up that production at about 11 1 million barrels QUANTITY a day which is which is the Saddy Arabia limit under the Opec ORG plus a green Still in place Francine PERSON . Anthony PERSON , thanks so much. Terrific briefing there from our Bloomberg NORP Middle East Synergy Market reporter Anthony DePalla PERSON . Now, coming up, we preview some of the big earnings reports to do from Europe LOC this week DATE including the German NORP chemical giant tankle as price pressures are trying to or starting to have an impact. Also, that other story, the sad you billionaire prince I will invested more than 500 1 million dollars QUANTITY in Russian NORP firms in the days DATE where I'm Moscow GPE 's invasion of Ukraine GPE will have a full round up of that story As well this is Bloomberg PERSON .
Companies need to think about how they normalize And that means to recognize and appreciate and respect and celebrate all aspects of culture in different cultures And so it's critically important that we recognize that this is an issue just as my sisters have said you know and make sure that we recognize how that issue shows up in the workplace and how we can be advocates and allies in action to ensure that no person no black person in this country feels margin Or disrespected or diminished in any way because of their hair or their race. So the challenges is not everyone understands that race based hair discrimination is a reality and so we find ourselves constantly educating people including lawmakers to ensure that they understand that hair discrimination is Hair PERSON discrimination is outlawed nationwide. Welcome back to Bloomberg Markets Europe ORG everyone we're 30 minutes TIME from the cash equities open in here are your top stories surprise rate cuts China GPE unexpectedly lowers key barring costs as retail One 1 million dollars MONEY a day well that's the daily DATE profit of oil producer I'm good in the second quarter DATE the most ever by any listed company and investors look to this week DATE 's fed minutes FAC and speakers including Esther George PERSON and Neil Kaskari PERSON what cruise will they offer Next month DATE . Now, this is a picture of what the futures look like. We're seeing a bit of pressure on Europe LOC on US GPE futures but actually European NORP futures holding strong despite that surprise cut from PBOC 100 CARDINAL futures games some four CARDINAL tenths of eight%. The Kac 40 again some 510 CARDINAL so that percent and then the big folks Horses on China GPE 's outlook continuing to darken and that is adding further to the burdens of unalreaded faltering global economy. Now, let's get straight to the Bloomberg Business Flash ORG . Here's the Alzapkins. Hi, Alice ORG . Hi, Francine PERSON . How do you ramco has posted the biggest quarterly DATE profit of Any listed company anywhere. One 1 billion dollars MONEY in the second quarter DATE up from 25 and a half DATE one 1 billion a year earlier DATE . They can't believe it is using the Winfall PERSON to reduce debt and invest in a huge expansion of its production Continue growing for the rest of the decade DATE . Japan GPE 's economy recovered to its pre pandemic side in the second quarter DATE with growth picking up after COVID curves or relaxed. GDP grew it in analyzed pace of two CARDINAL . Two% below the economist median forecast of two CARDINAL . Six% GPE . Consumer spending which accounts
Consumer spending which accounts for more than half CARDINAL of Japan GPE 's economic output led the growth. They can talk it At the age of 59 was announced on Saturday DATE after a 5 year DATE battle with cancer. He's been credited with building Doych ORG banks investment banking business and turning the German NORP lender into a global trading powerhouse that's your Bloomberg GPE business flash franzine oh thank you so much and of course giving A lot of time to Bloomberg TV ORG for interviews in the past and he was one of the sharpest minds certainly that I had ever met. Now, let's take a look at also at the week ahead this Monday DATE is a deadline for hedge funds to disclose their US GPE equity investments Tomorrow DATE we'll get the latest job state out of the UK GPE an indication of how the economy is firing amid monetary tightening and a cost of living crisis then it's all about Europe LOC as we get the latest euros on P date on Wednesday DATE and the CPI print on Thursday DATE . Finally, on Friday DATE , the UK GPE summer strikes continues with a walkout for the London GPE underground. Now, it's also a big week DATE for earnings in Europe LOC with some of the continent Biggest companies due to file reports and what is an increasingly challenging economic environment that is putting pressure on prices from on all of this we're joined by Bloomberg ORG 's April DATE road to April DATE great to have you on the program today DATE so Living crisis impacting German NORP chemicals maker hand call Good morning TIME . Yes. So, hang on reported results this morning TIME that were slightly better than expected. The company also raised its organic revenue forecast for the full year DATE . It did have a say that it's earnings were impact By input cost headwinds and we've seen that ankle faces a bit of a dilemma and that it can either sacrifice its margins to boost volume or raise prices further which could potentially put longer term growth at risk. It's also a question of whether further price increases could be accepted by hankles, consumers, and given that cost of living crisis If management pushes prices too far Could possibly swap to cheaper brands. Yeah and this is what you know the main problem for a lot of these big companies and it depends I'm sure on what kind of sector and what kind of products you make so how is Carlsborough the beer maker expected to manage inflationary headwinds? Yes, that's right. So, Carlsberg GPE is the next big brewer schedule to report this week DATE . It last week DATE already raised. It's 4 year DATE forecast. And based on a strong business performance year The brew stride cited strong on trade recovery in its European NORP markets and also strong results in its Asian NORP markets as well and it said that these factors more than offset Rising commodity and energy cost pressures in the first half of the year DATE the bruising seems to be adapt into the cost of living crisis by planning to invest And it's mainstream alcoholic beverages. However, going into the second half of the year DATE , could be a bit more challenging for Carlsberg GPE as consumers face rising energy costs. April DATE corporate payment market to also becoming increasingly competitive. What can you tell us about idea? This is a Dutch NORP payment firm. Expected to fair with his results. I think on Friday DATE . Yes, that's correct. So, investigators are set to be piling back into text talks which Be good news for AJ Agin PERSON shares have been going up since June DATE after series of monthly DATE declines and the Dutch NORP payment firm as you said which handles transactions for companies like McDonald's and Uber ended Last year ORG on a very strong note during the coronavirus lockdowns there's more people were spending online that really helps add in gain its market share and analysts have said that it's strong presence in the US GPE and the roll out of new products builds well for Growth. April DATE , thank you so much. April Roach PERSON there with the very latest on some of these companies that are reporting or have reported this week DATE . Coming up is European NORP leaders continue efforts to lessen their reliance on Russian NORP gas when also look at what role nuclear power could play in filling the gap. That's coming up next and this is Bloomberg PERSON .
So what's the best investment advice you've ever been given by anybody? Compound interest. The compounding of returns is an incredible miracle of business finance and human existence Everything you learn is additive everyday and if you keep at it and don't quit It's an incredible miracle. And it's and it's not just interest. It was it was always said about compound interest returns. Compound business returns compound human returns They're all very adventive. Could you learn every day DATE ? And if you keep at it, it's very very Super helpful. In your observation of investors, what do you think is the biggest mistake that average investors make? Selling it the wrong time. And they sell when the prices go down. Yes. Or yes. Not keeping People have conviction or the invest for their if they invest for the right reasons that just keep at it. There's a guest storage itself is not sufficient. We all facing a crisis at the moment. It's been produced by the cut off of Russian NORP gas but it tells us yet again just how volatile and uncertain fossil fuel prices are. Yes prices will remain Very high and it also me resolved that some disruption. He gets sort of tens of hundreds CARDINAL of of bigger wipes of renewable energy before winter DATE . So it is a matter of saving energy. It's a matter of securing sources. To reduce to reduce consumption. The first ORDINAL step obviously is to become independent Russian NORP supplies which in the end can only be managed by additional imports mostly Ellen G. PERSON Here today DATE we've seen the the reduction in the gas consumption by about 10% PERCENT in the EU ORG . Further down the path to emissions reductions than it would otherwise be. What business leaders and regulators are discussing the energy crisis on Bloomberg PERSON that's now get straight to Hi Alice hi Francine China Central Bank has unexpectedly cut its key interest rates I didn't ramp up For an economy way down by COVID lockdowns. The need for additional stimulus was underscore by official data shortly afterwards which showed retail investment and indus Production numbers for July DATE all messed economist estimates Water levels are key way point on the Ryan PERSON weather are expected to steady at an extremely low level this week DATE add Europe LOC 's energy crunch. Many barges can't transit past the marker at the point western. When the water level is below 40 CARDINAL centimetres according to government data it's already add about Five cm QUANTITY and is set to drop to 30 cm QUANTITY today DATE . A US GPE congressional delegation landed in Taiwan GPE on Sunday DATE for a 2 day DATE visit. They're set to meet with Tyrene ORG 's president and other lawmakers. The trip risks keeping tensions with China GPE high after health speaking Nancy Pelosi's PERSON recent visit to the region. Is starting to recover 2 days DATE after being stabbed at a lecture in New York GPE . AP ORG has quoted his agent saying that author is now on the road to recovery. Rushty said Remove from event later on Sunday DATE and
AP ORG have quoted his agent saying that author is now on the road to recovery. Rush D said tap in remove from event later on Sunday DATE and it's now able to talk. The over of the satanic verses suffer Serious injuries on Friday DATE after being stabbed multiple times shortly after taking the stage Oil and gas companies to fund a total freeze on energy bills over the winter DATE the plan to be announced by leader Kier Starma PERSON later today TIME we'll put renewed pressure on the government to act and less predict the typical annual household energy bill could top 1200 CARDINAL lb by January DATE . Global news 25 a day DATE . Quick take part by more than 2700 CARDINAL . This is Bloomberg Francine PERSON . Oh, thanks so much Als Atkins ORG in London GPE . Now, let's get more on that story joining us now as Bloomberg PERSON 's Lizzy Burden PERSON . So, Lizzy PERSON , what can we actually expect? Opposition leader. Good morning TIME . First ORDINAL of all, give me McDougal PERSON 's Today DATE . Yeah. Responding to the criticism that there had been a policy vacuum. You've got lane duck prime minister Boris Johnson PERSON . He's not likely to be replaced until September DATE the fifth ORDINAL You even had the former Prime Minister Gordon Brown PERSON weighing in and telling us what he would do if he were in charge so finally Kiss Arm PERSON is setting out his plan to continue the windfall tax on energy companies and freeze energy bills Cos of course energy bills are what are pushing up inflation for consumers in Britain GPE and the Bank of England ORG now sees it rising not just into double digits but above 13% PERCENT in the fall DATE . So it heaps pressure on the two CARDINAL contenders to be prime mini To adopt this policy but the the windfall tax was originally a labor idea. The conservatives have already copied it once. So it's a very difficult one to copy again. But on the other hand a poll for the time is by you go of shows. It's very popular especially even with conservative voters. So yes Difficult to resist. Yeah, it's during the years DATE . Strike action continues also in the UK GPE . Yes, and it's not just the transport workers, it's also the barristers, even the doctors are threatening to strike. The British NORP medical association says that their pay in real terms has fallen 25% PERCENT over the past 13 years DATE . Now, we're going to get more data on It's set to show really that the the power still remains in the hands of the workers you've got a tight labor market inflation expected to climb 10% PERCENT . Er but Liz Trust PERSON says that it's the government's job to control Wages to Steve PERSON off stooking inflation but it's a hard argument to make when inflation is this high and remember the public sector doesn't have the same power to set prices so as big tanks are cute it's hard for them to contribute Wage price spiral yeah it certainly is our Lizzy PERSON Bird and there was a very latest on the UK GPE thanks so much now let's get back to our top story this morning TIME the PBOC has unexpectedly can't it's key interest rates to ramp up support for an economy way down by COVID lockdowns and a deepening property slump now for more let's bring back our Bloomberg NORP Chief Asia LOC correspondent and the current and What does this mean for future policy for PBOC? I think clearly France GPE and the economy is under much more pressure than was expected July DATE was meant to be the month DATE of recovery it is near the third quarter DATE I suppose to be all about pulling out of the slump hit during the second quarter DATE A big lockdowns were in Shanghai GPE and Swan GPE but the number today DATE show that's not quite the case retail sales Could unexpected industrial output we could only expected a spite of course exports holding up investment still week DATE it's pretty much been led by government spending rather than the private sector and of course keep that appointment housing market and the housing sector continue to show weakness that's why we had the response that we did from the PBOC they came along and they Since January DATE but it's important to know that though that that rate could in and of itself isn't really expected to be AA sort of game changer for China GPE 's economy the price of borrowing isn't Economy it's more about the demand for loans companies in the households don't want to borrow given the pressures that they that the economy is facing so there's clearly a lot of work for propolis makers still to do to turn this around
Yeah the man for loans companies in the households don't want to borrow given the pressures that the that the economy is facing so there's clearly a lot of work for for police makers still to do to turn this around So yeah are you expecting China GPE 's outlook to continue to darken and I think that's where we are at the moment frenzy and I mean as I say we were meant to be heading into a better second ORDINAL half CARDINAL for China GPE 's economy all of the narrative had been around how the worst of the lockdown so to speak we're over you would start to see a gradual recovery for consumption ex Holding up okay there certainly is plenty of policy for support going into the economy eh that was expected again traction two CARDINAL but I think when you look at these numbers they kind of suggest that that recovery is pretty much stolen out it doesn't go into reverse Think the bigger question also is what exactly is going to change from here when the authorities seem pretty committed to COVID oh all the official language and signals so far have been there determined to stand by that given the health dividend that willing to take a bit of a hit to the economy The property slump continues as it is. We're not seeing any kind of a massive bailout Say either what's going to pivot where will you turn come on the policy side of things politics will have a questions or a lot of economist are asking today DATE just what steps will you go and take now overcoming weeks DATE and months DATE ahead Yeah and then I guess that the other question of course what this means for the global economy Hey look at the very least Francine PERSON you have to say global growth is slowing down it's under a lot of pressure everywhere the IMS said we're cheating on the brink of a recession you know in past time turns you might say China GPE would be there to put a floor under demand given all Stimulus in giving all of its domestic driven a demand but that's clearly not going to be the case this time around. The world cannot rely on China GPE at the moment. It seems to be that the only buffer between the world, the global reception, and not at the moment is the US GPE jobs market because Start using going to be the pillar of support for global demand that it once was. Thank you so much as always our Bloomberg GPE Chief North Asia LOC correspondent and the current now coming up we'll look at your stocks to watch including SAS ORG priority from Apollo Global Management ORG has provided 100 1 million dollars MONEY in financing to the Scandinavian Airline ORG as it tries to regain it's financial health so that story's up next and this is Bloomberg PERSON . Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving. Coverage starts August 25 DATE only on Bloomberg PERSON television and radio A digital first ORDINAL approach to the future work is where the industry and all companies will be heading. Immersive experiences that have a sense of active presence. One 1 trillion dollars MONEY market by the end of this decade DATE . And whether you know it or not you'll probably be working there in the future. We're moving into a world where we're gonna be interacting with computers with our bodies This is definitely trippy. I think the adoption curb is gonna be slow.
Working there in the future. We're moving into a world where we're gonna be interacting with computers with our bodies. Definitely trippy. It's weird. Thing right now. Oh, look at you. If you have no legs. Kind of a fun world and we're just at the very beginning of a very long journey Choose Bloomberg PERSON . It's a great question. Great question. I'm glad you asked that. Welcome back to Bloomberg Markets Europe ORG but 10 minutes TIME from the cash equities open the European NORP futures holding strong gain some four tenths CARDINAL of a percent again this is not like what we Asia LOC where we saw a lot of the stocks begins being paired after we had that a China GPE unexpectedly cutting rates and then if you'll get US GPE futures they're actually on the way down I think some three CARDINAL times of eight% overall the focus today DATE firm than what China GPE said the fact that the outlook continues to darken we have two CARDINAL data points that actually we need to look at and of course read across To some of the Chinese NORP tenure bond features. Again, that's gapping higher after we heard from PBOC. So, we look at further down the road, what that means for mortgages, what that means for the housing market, in China GPE . It's also take a look at some of Events coming up in the week DATE here in the UK GPE on Tuesday DATE we get jobs data and can to our grocery price figures which will give a sense of food inflation in the UK GPE . Trust and wish you soon. We'll also hold another hostings event in Scotland GPE . On Wednesday DATE , we get the closely watched CPI data for July DATE while soon I can trust head to Belfast GPE on Friday DATE we get consumer confidence and retail sales. Now, it's also take a look at the stocks to watch today DATE with our Laura Right PERSON , Laura PERSON , what do you have on the plate? Or starting with these Swedish NORP carrier essays. If they have secured 700 1 million dollars MONEY in financing from me private equity firm Apollo ORG . Importantly this is a A bridge financing associated with restructuring when a company has filed for chapter 11 LAW bankruptcy SES believe they will have quarter DATE approval for this financing by mid September DATE they originally filed the bankruptcy back in When wage talks between the airline and their pilots collapsed. But overall this is an airline that is really in trouble. It has a significant dat burden. It was all really lost making before the pandemic. And this year Share prices fallen by around 50% PERCENT . Laura PERSON , what about Henko PERSON ? Yeah, this is the German NORP chemicals make it. It was a beat on second quarter DATE revenue. The company raised that full year organic revenue guidance. Now, the key here is that the decreases in volumes were not as bad as fair and that tells us Hengel PERSON has been able to pass on higher prices to that customer so far for the first half of the year DATE the adhesive technology's business was standout that's industrial glues and Call ORG is really the global market leader. They also noted that their plans to withdraw from Russia GPE and Belarus GPE are on track to take place by the end of this year DATE . Laura PERSON I've been a lot of the folks of course on energy but you're also looking at minors today DATE . I'm looking at mine as following data from China GPE which shows us that the world's second ORDINAL largest economy is still struggling pointing to a slowdown. Home prices fell for an 11th straight month DATE . And some of these minors anglo American NORP BHP reoccinto Really essential in supplying raw materials that are necessary for the home construction sector iron or particularly which goes into making steel. Well, analysts over at JP Morgan's ORG say that right now in the world second ORDINAL largest economy No one is immune. Laura PERSON thanks so much Laura PERSON right there with some of the major stocks we're watching now let's get straight to the Bloomberg GPE business flash here's Alice Atkins PERSON hi Alice hi Francy Ramco has posted the biggest quarterly DATE profit of Listed company anywhere net income rose to $ 48 MONEY . 4 billion CARDINAL in the second quarter DATE up from 25 and a half DATE one 1 billion a year earlier DATE the company is using the Wimble to reduce debt and invest in a huge expansion of its production capacity see you in Nasa ORG as a company All.
Yeah, earlier. Is using the windfall to reduce debt and invest in a huge expansion of its production capacity. See you Arman Nathas PERSON as a company expects all demand to continue growing for the rest of the decade DATE . Economy recovered to its pre-pandemic size in the second quarter DATE with roof picking up after COVID curves were relaxed GDP grew it in analyzed piece of two CARDINAL . Two% below the economist median forecast of two CARDINAL . Six% consumer Which accounts for more than half CARDINAL of Japan GPE 's economic output led the growth And the UK GPE 's opposition labor party has proposed extending Britain GPE 's windfall tax on oil and gas companies to fund a total freeze on energy bills over the winter We'll put renewed pressure on the government to act and let's predict the typical annual household energy bill could top 4200 CARDINAL lb by January DATE . Tributes are pouring in from Wall St and beyond for Andrew Jane PERSON they can't talk it's Gerald PERSON president and former Deutsche Bank ORG co CEO Jane PERSON 's death at the age of 59 DATE was announced on Saturday DATE after a 5 year DATE battle with cancer He's been credited with building Dutch NORP banks investment banking business and turning the German NORP lender into a global trading powerhouse that's your Bloomberg GPE business flash francine oh it's thanks so much Alice Adkins PERSON there with a very latest of course on some of these important stories now this is the Treasure WORK_OF_ART is a couple of things that we need to keep an eye on. I know August DATE is a bit quieter than usual but the focus will be on Jackson Hall FAC that starts August 25 DATE . The dollar is actually extending gains against Is after we had that data in the China GPE actually signaling weakness in the economy the drop in the after one is among the biggest contribut That are now driving the Bloomberg PERSON dollar spot indexes first ORDINAL back to back advancing a month DATE so with the fears of recession both in the US GPE and Europe LOC I have to say a lot of the focus and we've been hitting the phones to try and get investors on the call on that the stagnant growth in China GPE also means that the global economy really locks driver to expand that would bode ill for Acids NORP and should support the dollar as a haven. So, we'll look at dollar. We have the Bloomberg GPE US GPE dollar 1263 DATE . Coming up. It's a market open. Of course, futures still pointing to higher start despite the pressure on US GPE futures. The other thing we're looking at, Valerie PERSON , did some great charts on this. Is it the Chinese 10 Bond future. Again, grappling with the PBOC did and then of course we will get energy levels because of the water levels on the river right this is Bloomberg PERSON . There is an epic saying in Italy GPE when it comes to family generations that the first ORDINAL generation creates the second ORDINAL generation expands and the third ORDINAL generation destroys And that's almost what happened in the Gucci PRODUCT story. Now experience about those who says I love you and then just read you. The Gucci PERSON family was the strength but also the weakness of the label. The situation became dire with Gucci PERSON 's finances. They were not able to pay salary.
Also the weakness of the label. The situation became dire with Gucci PERSON 's finances. They were not able to pay salaries. They were not able to pay suppliers. Gucci PERSON 's really teetering on the brink at this stage. Our customers, vehicles, That are their primary vehicles that are EVs and be able to do that. We need to have range and infrastructure and we need to remove the paint points and so that's what we're doing. Welcome to the European Market ORG open everyone I'm in to go until the start of cash I could eat trading in front here in London GPE and here are your top stories surprise at rate cost will China GPE unexpectedly lowers key borrowing costs as retail sales and industrial production is forecast like you want 532 1 million dollars MONEY a day that's a daily profit of oil producer said your uncle in the second quarter DATE the most ever by any listed company and investors look to this week DATE 's fed Speakers ORG including Esther Georgia PERSON what clues will they offer on whether the FMC ORG will go big with hikes next month DATE So, good morning TIME everyone. Let's take a look at the futures and actually we're seeing European NORP futures, holding Strong gaming between three tenths of a percent CARDINAL and also four CARDINAL tenths of eight% for the 100 CARDINAL futures. Now, this maybe Catherine PERSON due to compared to what we're seeing in the US GPE . We're seeing After that surprise interest rate cut from PBOC so it's very clear that actually investors are trying to So that disappointing data prince out of China GPE that surprise interest rate cut means that they're worried about something econom Filters ORG through and has an impact on global growth worldwide. Jackson Hall ORG probably the next catalyst for a lot of other stocks in the US Browns or Treasuries ORG that starts August DATE 20- If you'll get the footsy gaining some three tens percent PERCENT at the open similar games for the Ibex and the Cat 40 the most interesting bit as has been in the last couple of weeks DATE has commandees Iron or under If you look at natural gas pretty much unchanged but we continue looking of course at the Rine River LOC and global levels of that now the problem is that it also is less econom If you have a barge or some of the ships that need to go through Rine River LOC It really is less economically because you need to put less weight to pass on to much shorter water levels overall this is a picture for the US GPE 10 years DATE so we look at the global impact not only that PBOC has on everywhere else but what it happens on oil I don't know if we have Otherwise we'll move on to something else. But of course there you go. You can see S and B futures done two CARDINAL tenths of eight And it's really that crude oil that we're looking at at one% ORG lower. Now, China GPE 's economic recovery unexpectedly weekend in July DATE as fresh COVID outbreaks across the country wait on consumer business spending, cutting the growth outlook, and prompting the central bank to deliver a surprise interest rate cut. For more, let's bring in Bloomberg PERSON 's chief Asia LOC correspondent, he's And so and what's the main key takeaway from the data Weakness ORG across the board Francine PERSON . Weakness and retail sales. Weakness and industrial output. Weakness in investment and of course more signs of softening and all important real estate sector two CARDINAL . Remember the month of July was meant to be when China GPE 's economy started to turn around to gain some momentum Some of the big lockdowns earlier in the year DATE . That isn't playing out. We saw softness.
From some of the big lockdowns earlier in the year that isn't playing out we saw softness across the board and that's what forced the central bank this morning TIME to respond by cutting its key interest rate for the first ORDINAL Since January DATE they're not moving in of itself isn't expected to be a game changer for China GPE 's economy wanna interest rate cut alone won't be enough to turn things around giving what's happening with COVID oh and giving what's happening with the real estate But the move does speak to how concerned authorities are but the depths and breath of the slowdown in China GPE 's economy and and are certainly not wasting any time now to pull whatever they can to try and put a floor on their thing. So a pretty negative read on China GPE 's economy and it does suggest ongoing down Pressure heading into the second half of the year DATE . Yeah so I was gonna ask him what does it mean for what policy makers could do next we thought they were they weren't gonna do much from now on what does this cycle bring Well I think this is the big crash in the front scene exactly how will they respond until that event to respond with a kind of large scale stimulus that we might have seen in past down turns in China GPE we know one covered oh to language hasn't They are willing to take some economic pain in return of course for the public health dividend of keeping the virus under control under real estate sector they clearly aren't bailing out or offering kind of broad scale bailout that you might have seen in the west for some of Trouble the property developers for example. So the question is what will pivot? Where will you turn come? It's probably gonna be less for focus or less for story but it's central bank and more and what will happen under government spending side of things local, local governments for example have already Spend more money on infrastructure projects so I think more of a story about fiscal than monetary going forward. So Anda PERSON what does this mean for the global economy I think it has to be a negative front scene. Again, in past downturns, you could have relied on China GPE . There'd be something of a cushion for global growth given its past record with putting stimulus into the economy and of course, it's own homegrown demand. That's not Or not is basically the US GPE jobs market because China GPE is offering the pillar of support that it has done in previous downturns. And I think too much are Bloomberg NORP Chief North Asia LOC correspondent in the current now it's getting to the key market drivers with Wayley Black Rock PERSON Global Chief investment officer way as always thank you so much for joining us I have one 1 million CARDINAL questions on something for conviction calls we'll look at valu Will it start with China GPE ? How worrisome is this for the global economy While there are few headwinds facing China GPE this year DATE the COVID policy and also exports decreasing as well so thinking about global economies shifting from goods through services Would decrease the amount for export from China GPE so we're actually expecting at both from China GPE growing this year DATE and previous year DATE at meet teams decreasing to single no single digits next 2 years DATE so all of that kind of had wins is also why we're seeing policy makers wanting to come out and We're not having a rosy expectation a full growth this year DATE . Yeah, this was unexpect Right? I I mean I think we spoke to like 30, 40 CARDINAL economists. I know and predicted that we get this from PBOC. Are are we going to see a much more active PBS ORG Policy makers in general. Well, it's not just a PBS ORG . Also the fiscal fiscal side of things but the reality is it's gone other days where we have excessive kind of easing leading to very unproductive projects. I think policy makers even got so Which is why our expectation for growth this year DATE is with a three CARDINAL handle next year DATE with a five CARDINAL handle and in terms of Average growth for the next 2 years DATE or so. We're talking about Seven% average growth and if we have very strict policy on the COVID front then this year DATE growth will be lower but because it's a restart the next year DATE could be higher. Where we have a great chart actually looking at at you are sorry Chinese NORP bonds. We don't often So I always keep on saying the treasure. I have to wake up. It's a Monday DATE morning TIME . I need a double espresso. Look at that. This is a Chinese NORP bun. You can see that rally. Wait, do you Into any Chinese NORP assets right now. While currently we're staying close to benchmark when it comes to China GPE . Allocation where neutral and China GPE accordance.
You Into any Chinese NORP assets right now. While currently we're staying close to benchmark when it comes to China GPE . Allocation where neutral and China GPE equities were neutral. China GPE bones. The benefits of holding especially China GPE Portfolio as we can see is that when the rest of the world are hiking rates PVOC is cutting rates so there is a bit of a that versification benefit but the income potential that you'll pick up is erode as given how interest rates have developed Far ORG this year DATE . Wait, I know we've been talking about the 60 CARDINAL , 40 CARDINAL portfolio, but what will be the the biggest shift actually for markets in the next 6 months DATE ? Well I think the focus really is around Central Bank Central Policy ORG response and also inflation dynamics so so far we have seen 60 40 CARDINAL tip or 60 40 CARDINAL portfolios deeping earlier in the year DATE and rebounding In recent in recent weeks DATE we believe that this is a pair market rally we wouldn't want to chase that because we believe any pricing for Dobish NORP pivot from Central Banks ORG is a bit too premature at this point so where's the entry point The entry point while we want to see a proper acknowledgement from Central Banks ORG especially the fed ORG about the very tough trade off between growth and inflation as they make policy decisions at this point and we also want to see them choosing to leave with inflation. If they So we want to see acknowledgement and also choosing to live with inflation so Have only seen BLE doing that. So on Tuesday DATE do that we do not cease sustained overage pivot and that's why we Residents to get back into the market. Alright, well, thanks so much. We'll either a black rock global chief investment strategist stays with us. We'll also talk about earnings and some of the outlier calls out there. Coming This is Bloomberg PERSON . Record setting temperatures deadly forest fires receding rivers in this episode of Bloomberg Green PERSON we're focusing on extreme weather we'll explore the science behind the recent Wait ORG . More extreme than it is now. I'm afraid that's an inevitable. The consequences of extreme weather there is overall low awareness that heat kills and until recently there's not been as much effort to try in educate people about the dangers of heat. Mitigate and adapt. Government Stimulate And and Upsetting GPE . Headquarters in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this On Bloomberg TV ORG quick take ant online
What welcome back to the open everyone 11 minutes TIME into the European NORP trading day and you can see European NORP stocks actually holding Three CARDINAL tenths of eight% higher overall despite that surprise from PBSE ORG and China GPE . Now it's a big earnings week DATE for Europe LOC with some of the biggest or the confidence, biggest companies due to file reports in what is an increasingly challenging economic environment that is putting pressure on prices. For more, we're joined by Bloomberg ORG 's April DATE road to April DATE . Thank you again for joining us. So, how's the cost Crisis impacting the driven chemicals make ankle for example can we expect price increases Good morning TIME . Yes. So Hanko GPE reported slightly better than expected results this morning TIME . The company was also able to raise its organic revenue forecast for the full year DATE . It did however say that it's earnings were impacted by input cost headwinds And we've seen the ankle faces quite a bit of a dilemma and that it could sacrifice this margins to boost volume or could raise prices further which could potentially put longer term growth at risk. It's also a question of whether consumers will be willing to accept higher prices You know if management pisses prices too far then consumers could possibly swap to cheaper brands. So April DATE when you're looking for example at beer makers including Carlsberg GPE how are they expected to manage inflationary headwinds? Yes it calls back is the next big brewer schedule to report this week DATE last week Carsburg GPE raised its 4 year DATE outlook based on a strong business performance Recovery in European NORP markets and strong results in many Asian NORP markets as well. So be really interested to see how the the It's first half year DATE results given rising commodity and energy cost pressures going into the second half of the year could be more challenging for Carlsberg GPE as consumers faced rising Energy costs. April DATE so corporate payments markets also becoming increasingly competitive. We have the Dutch NORP payment firm Coming up with reports on Friday DATE what can we expect from them? Yes, sir. Investors are set to be piling back in to text stocks which could be good news for add yen. The Dutch NORP payment firm which handles transactions for companies like Uber ORG , a McDonald's ORG , ended last year DATE on a really strong note. Coronavirus lockdowns when more people were spending That really helped adding gain it's market share and investors endless so I have also noted how ad in strong US GPE presidents and its reputation there and the roll out of new products Still both well for positive growth. Thanks so much our April Roach PERSON there was a very latest on some of these earnings now Congress ORG pulled by Bloomberg PERSON say the risk of a euro area recession has reached the highest levels November 2020 DATE . Still with us. Wait, first ORDINAL of all, why don't we go back to maybe some of the earnings? And whether Such a lagging effect from when we have the earnings to what it tells about the future economy. Do you worry that the next quarter DATE is a crunch Or a lot of companies. I think next quarter DATE could be worse than what we have seen so far this quarter DATE . This past quarter DATE actually on the surface of things earnings are holding up as a big better And also if you strip out energy and financials actually earnings growth are close to flat right so there's some all performing sectors versus the broader markets not doing as well so Expect the a recession forecast for Euro area in particular translating into very little earnings growth that currently is not being forecasted. So does that mean Your portfolio way? Does it does it give us an you know an indication of what the economy could do in the future again? Is it too backward looking? Well, some of the only figures obviously they're back looking but their guidance are
You know an indication of what the economy could do in the future again is it too backward looking Well some of the owning figures obviously they are back looking but their guidance around kind of how well they can pass how much they can pass through the Course to and consumers their forecast around margins can give you a bit of a indication about future and our expectation is that margins would come under pressure with a rising production course with rising labor course and currently Companies are able to pass some of that rising production cost through to our consumers because for how long the eggs are that's the problem that's We're in a scarcity type of environment so they can do that now but we can't expect them to be able to do that The water levels of the rain. Everyone suddenly inexperient all of that. You know, they're not really basis and you really illustrates how tight these global gas markets are. Yeah, energy crisis is facing Europe LOC in particular but actually the Glowboy NORP economy as we had into a winter and we're looking at the very surreal Fact of energy rationing facing Europe LOC right and this is why we have the expectation that we're going to had into a recession in Europe LOC this side of what this year DATE and then potentially growth stolen next year DATE in the US GPE . This is not price in the markets. In terms of equities, no, in terms of equities, Appropriately It is pricey in a mild version of growth slowing down which is why as we think about portfolio construction we prefer an app in quality adjustment to portfolios we prefer credit over accordance because the different degree to which they are pricing in the growth slowdown so it do make a difference between European NORP equities to USA GPE goodies and in all of this I mean do you need To Margie Mark is actually to find value. Well, currently we have a minus one allocation to European NORP and US GPE acquires on a scale of minus three CARDINAL to plus three. So, modestly underweight because we're waiting for that doveish It on the sustained basis. There's not coming through and also earnings are a way to positive. We're broadly preferring credits over our equities and even including emerging market as well. We prefer emerging market that over emerging market equities. Thank Global chief investment strategist joining us this morning TIME with everything about of course China GPE , the US GPE earnings, and energy. Now, let's get straight to the Bloomberg GPE business flash. Here's Laura PERSON , right? Hi, Laura PERSON . Hi, Francine GPE , Saudi NORP , Ronco PERSON , has posted the biggest quality profit of any listed company, anywhere. Net Rose to $ 48 MONEY . 4 billion CARDINAL in the second quarter DATE up from 25 and a half DATE one 1 billion a year earlier DATE the company is using the windfall to reduce debt and invest in a huge expansion of its production capacity see you I'm in Nasa ORG says the company expects oil demand to continue growing for the rest of the Japan GPE is economy recovered to its pre-pandemic size in the second quarter DATE with growth picking up after COVID cubs were relaxed GDP grew at an annualized pace of two CARDINAL . Two% below the economists medium forecast of two CARDINAL . Six CARDINAL Consumer spending which accounts for more than half CARDINAL of Japan GPE 's economic output leads the growth. Tributes GPE are pouring in from Wall St and beyond for Anshu Jane PERSON at the cantalfits Gerald ORG president and former Deutsche Bank ORG co CEO Beth was at the age of 59 and it was announced on Saturday DATE after a 5 year DATE battle with cancer. He's been credited with building deutsher banks, investment banking business, and turning the Global trading powerhouse. Laura PERSON , thanks so much. Laura PERSON , right in London GPE . Now, coming up the UK GPE 's opposition labor party proposes an energy price cap freeze. There's a country faces its worst Of living a crisis in decades DATE . We'll have plenty more on that story next and this is Bloomberg PERSON . Economic policy symposium
2022 CARDINAL economic policy symposium. Discuss the economic issues and solutions that keep the world's money moving. Coverage starts August 25 DATE only on Bloomberg PERSON television and radio What's the best investment advice you've ever been given by anybody? Pound interest. The compounding of returns is an incredible miracle of business finance and human existence. Everything you learn is added to everyday and if you keep at it and don't quit. It's an incredible miracle and it's and it's not just interest it was it was always said about compound interest returns Compound business returns compound human returns They're all very additive cuz you'll burn every day and if you keep at it it's very very In your observation of ambassadors what do you think is the biggest mistake that it average investors make selling it a long time and they sell when the prices go down yes or yes not keeping People have conviction or the invest for their if they invest for the right reasons that just keep at it. Things that were independent. I'm David Weston PERSON . We think that's the next secular shift. Renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. The much more line 60 40 CARDINAL portfolio. 60 40 CARDINAL you know a portfolio. Or generally speaking for most investors would would make We'll make a comeback. We need to give it some more time. There may be better ways to go than 60 40 but I think it's a base case. It still makes lot of sense. That 40% PERCENT involves is probably close to five or 10 CARDINAL . I actually think they're increasing it pretty dramatically at the moment as is they're looking for Going outside into other real assets, real estate, private equity, private credit, can can be a healthy addition to the portfolio and really help diversify your return because 6480 DATE as I mentioned has been a challenging portrait construction exploiter to have. Bloomberg PERSON gets there with their views on whether the six CARDINAL 240 CARDINAL split will be to inflation. Now the UK GPE 's main opposition labor party wants to extend burns windfall tax, sun, oil, and gas companies with proceeds used to fund a total freeze on energy bills over the winter DATE joining us now for more on this is our Lizzy PERSON Bird and Lizzy PERSON . What can we actually From Kier Starmer PERSON today DATE . Well, he dominating the headlines for the first ORDINAL time in a long time today DATE . Kissed on a really responding to all his criticism that there's a policy vacuum. You've got a zombie government, And even the former prime minister Gordon Browns PERSON weighed in with what he would do if he were in charge so finally we've got Kier Starmer's PERSON plan he wants to continue the windfall tax which of course was originally Labour ORG 's idea and the conservatives adopted
What he would do if he were in charge so finally we've got Kier Starmer's PERSON plan he wants to The windfall tucks which of course was originally labour's idea and the conservatives adopted and used that to help freeze energy bills which is really painful for consumers. This is what's adding to inflation. The bank of England sees it rising above 13% PERCENT in the fall DATE . Er but the fact that Labor ORG 's pushing for this really heaps pressure on the two CARDINAL candi To replace Boris Johnson PERSON because this is a popular idea. There's a mug of poll in the time today DATE showing that it goes down very well with conservative voters in especially. Er and when you've got inflation high and companies breaking in the profits like Aramco ORG . It just it goes down well with the vote. So it it influence Policy. Indeed. This policy before but Liz Trust PERSON says that she doesn't she is not open to a new windfall tax so she's the front runner it's unlikely to happen if she wins and then Strikes something that we hadn't seen in the UK GPE for a long time. Yeah it's been dubbed by the UK GPE press the summer DATE of discontent like the winter of discontent in the 70s DATE . You've already had the transport strikes, the barristers, and now Doctors are threatening to strike as well. The British NORP medical association says that over the past 13 years DATE the doctors have had a 25% PERCENT pay cut. Trust says that the government has to take control to avoid a wage price spiral. But it's a difficult argument to make when the public sector isn't really in control of prices. It's not really contributing to a wage price spiral. But we're likely Get more data this week DATE on jobs Still climbing so really the power's in the hands of the workers for now what's amazing is that we don't see actually labor behind any of the strikers Is that is it very difficult one for Labour ORG because on the one hand this is the party of the unions but on the other hand it they're meant Lizzy PERSON thanks so much Lizzy PERSON Burden there Really just on the UK GPE coming up water levels at a way point on the Rhine River LOC expected to study at extremely low levels adding to Europe LOC 's energy crunch more of that story next this is Bloomberg PERSON . Hey, eyes. Is the chance of humankind to really understand itself? How much of that is true?
AI is is the chance of humankind to really understand itself. How confident did you actually overachieve? Did you, you know, back then realize that we would be using AI in many different jobs? Was it slower or faster than you thought at the time? I think if I had a 35 or 40 here prediction task I would have been more or less on track as to where we are today DATE but I would have predicted steady linear increase over time but instead the field Very minimal improvements until the last 5 or 10 years DATE then it really took off I think we ended up in the right place but that was very wrong about the trajectory to this day we still know very little about how the brain works but this machines are getting ever more powerful I feel in some sense we did end up learning Now we can rule out many many things because AI or machine learning has become so good as so many things that what's left must be the key aspects of human intelligence. Why did the biggest names in business choose Bloomberg PERSON ? That is a great question. Great question. Great question. Great question. Hey Facebook Hey Facebook Hey Facebook Welcome back to the market open everyone we're 30 minutes TIME into the European NORP trading down here are your top stories surprise rate cards China GPE unexpect Production The old. 532 1 million dollars MONEY a day that's the daily DATE profit of oil producer Sadie PERSON where I'm good in the second quarter DATE the most ever by any listed company And investors look to this week DATE 's fed minutes FAC and speakers including Esther George PERSON and Yokushkari PERSON what clues will they offer and whether the FYMC LOC will go big with hikes next month DATE So let's text well quickly take a look at what equities are doing interesting to see we're holding up to gains here in Europe LOC with the stocks here 600 CARDINAL games in two CARDINAL tenths of eight%. The foods he also gaining in the US GPE , a different story, because we're seeing quite a lot of pressure. Two CARDINAL stories we need to follow, to follow very closely. First ORDINAL of all, China GPE , unexpectedly cutting interest rates ahead of the poor data, and the European NORP Edging higher with oil and industrial metals actually declining. So, let's get to the second ORDINAL health care and utilities on the app but basic resources insurance. Real estate it down some six tenths CARDINAL of eight%. So, European NORP power prices continue to hit new records amid the fallout from the Ukraine GPE war with many of the continents leaders seeking altern Gas supplies and different energy sources altogether. Well, here's what some of our Bloomberg NORP TV guests have been saying. This guest storage itself is not sufficient. We are facing a crisis at the moment. It's been produced by the cut off of Russian NORP gas but it tells us yet again just how volatile and uncertain fossil fuel prices are. Yes prices will remain very high and it Me resolved that some disruption. We cannot magically get sort of tens or hundreds CARDINAL of of bigger was of renewable energy before winter DATE . So it is a matter of saving energy. It's a matter of securing sources. More obligatory measures to reduce to reduce consumption. The first ORDINAL step obviously is to become independent Russian NORP Which Indians NORP can only be managed by additional imports mostly LNG ORG . In the guest consumption by about 10% PERCENT in the EU ORG . Active this crisis will be that Europe LOC will be further down the path to emissions reductions than it would otherwise be. Oh joining us now is Bloomberg PERSON 's energy reporter Anna Shivaya PERSON Anna what's the latest with the
Further down the path to emissions reduction so it would otherwise be Oh joining us now is Bloomberg PERSON energy reporter Anna what PERSON 's the latest with the Rinewater PERSON levels and the impact this has on commandee Are indeed water levels at the Rine River LOC drop to just 30% PERCENT and 30 cm QUANTITY Hey 11. 8 inches QUANTITY today DATE that's a lower than a expected already on Friday DATE and this low level is expected to remain until at least the middle of this week DATE that's handbrake supply of vital commodities I just call to Switzerland GPE You have to rely on Gas prices increase So and Germany GPE has also outlined measures in that saving energy or are there different details to the blueprint we had a couple of months ago DATE ? Or indeed that Germany GPE sticks to Germany GPE that's 2 weeks DATE ahead of the schedule But still Germany GPE just want to make sure that there is no disruption in the winter especially it's still unknown what's going to happen with Russian NORP gas flows ehm so yes the journey knows proposing to lower temperature in offices to the 19 CARDINAL ยฐC for the winter just to make sure of you conserve energy Over and avoid supply chases at the peak demon time And overall we talk about the Ryan River LOC so much does this just point to the fact that this market is so tight that even something that in the past would have been quite small just takes Proportions ORG . Indeed, it's not, it's not, it's often doesn't as you do have, lower levels in mine, almost every summer you have this situation. Much worse so that level As low as in the eight in many years DATE . Supplies from Russia Going ORG at just 20% PERCENT of the positive I keep pipeline lost stream so they just have less gas available so that's queen size and overall I need you crisis ongoing in Europe Great thanks so much for it's a great insight to Anna sure yes they are there with very latest on energy now let's stay with the energy story joining us now as we get it at La Vina FAC he said of energy Research at Golden Sox ORG . Thank you for joining us. I mean, we've had a pretty incredible couple of weeks in terms of energy prices on the price pressures. When does this pressure ease off if it does? I think Francine PERSON is gonna be very difficult For the pressure to is off because we've been under investing in the energy system pretty much since 2014 DATE and although we can take a more positive outlook to all of this and think that this is the chance for Europe LOC to create a more independent energy system with renewable with green hydrogen with bio energy Really be a transformational moment for Europe LOC but on the other side I think the solution doesn't come in the short term it will take years DATE to rebuild a more independent energy supply any in the meantime they difficult to find LNG ORG will continue Wait on the European NORP gas prices. So so how much tighter do you believe the markets could get? I think it will all depend on how this winter pans out Last winter DATE we were actually quite lucky it was a very warm late winter DATE which really saved us problems in the spring this year DATE we don't yet know how the weather is going to look and we also don't know how much Russia GPE will ultimately import in the export in the core of winter so my sense is we are The time of key uncertainty Russia GPE certainly wants Europe LOC to feel uncertain and anxiety around the winter and I think we will be
Russia GPE certainly wants Europe LOC to feel uncertain and anxiety around the winter and I think we will need to see it month DATE by month DATE we have a solution for the long term it's renewables and green hydrogen based but in the near term and fortun Subject to the market for a few Nikki when you look at reimagining Europe LOC 's energy system which I know you've written extensively about how long does this take? Is there a timeline impossibility of that you know we're trying to wean ourselves of fresh and gas but this takes years DATE . I think Francine Hey PERSON portal was leaving the Share was developed and today DATE the US GPE is one CARDINAL of the most energy advantage countries in the world. I think Europe LOC can achieve the same in a similar time frame. It would take about 10 years DATE for renewables and green hydrogen to become big enough to start to really Ring because down in Europe LOC but we think this could mean a 5060 DATE percent saving to the European NORP consumer and the handling of the energy import on a tenya basis. It could be a complete positive revolution of the European NORP energy system So but that means what exactly so who would be the biggest winners and losers in this? I think the biggest winner so would ultimately be a consumer and the industry in the long term and in the near term the utilities and the big energy companies including the oil and gas majors who can develop this infrastructure any structure based on solar and wind mostly in Bandage countries idea and so the Europe LOC for solar UK GPE and the Baltix PERSON full of show wind a connection of this systems and then Hydrogen GPE industry which really I think is at the core of all of these to make sure we can face seasonality but also allow heavy transport and heavy in the street to utilize this renewable power and the energy system The energy carpets names that I think will be advantaged in all of these because it's carpets that we need something we haven't seen for the last 7 years DATE . Yeah. But Mickey PERSON give me a sense of how much money we need to do this transition. I think I mean this is over is it over 10 1 trillion dollars MONEY is it and does the European Union ORG can they afford to pay that much? Absolutely the number is 10 1 trillion dollars MONEY that's what we need to complete transform the European NORP energy system out to 2050 DATE and in the meantime achieve 90 CARDINAL carbon so achieve the two CARDINAL core goals of Europe LOC and for the End. And The cost per hour the peak would be around 200 1 billion MONEY so it would be comparable in size to what we've seen with the recovery time effectively it would be an extend in extension of the recovery Into the future with a bias towards energy and organization. We think it's achievable and with the right regulation we think the pride that there is in our private capital they can be unlocked. This developments. So we get this is by 2050 DATE . What needs to happen the next 2 years DATE for us to hit that goal? I think what needs to happen in the next 2 years DATE is supportive, clear, Regulation. They support renewables and the green hybrid. In renewables I think we already have a good framework across Europe LOC . But we need I think more support for green high attention and we need the better connectivity in Europe LOC . We are talking now of the gas pipeline that goes from portugal GPE all Germany GPE I think we also need the better integration of power we need power grids that can go west to east and north to south and also we need in the longer term green
We need power grids that can go west to east and north to south and also we need in the long term green hydrogen pipelines that do the same. We need connectivity because we need the low cost renewable producers in Europe LOC to be able to supply the rest of Europe LOC With cheap attractive renewable power and hydrogen. Nikita as always thanks so much for joining us Michele PERSON . Energy industry research at Coleman Sax ORG . Now, coming up Saturday DATE around Cost, the biggest quarterly DATE profit of any listed company ever will have the details next and this is Bloomberg PERSON . For the future work is where the industry and all companies will be heading. Immersive experiences that have a sense of active presence. One 1 trillion dollars MONEY market by the end of this decade DATE . And whether you know it or not you'll probably be working there in the future. Removing into a world where we're gonna be interacting with computers with our bodies. Definitely trippy. I think the adoption curve is gonna be slow. It's weird. Thing right now. Oh, look at you. If you have no legs. It's kind of a fun world and we're just at the very beginning of a very long journey. Japan GPE 's critical role in the global economy is changing as the world recalibrates. Japan GPE 's leaders are boarding a more innovative and sustainable path forward to revitalize the nation. Giants ORG policy makers and pioneers tell us how they're doing just that. Every week DATE on Japan GPE ahead right here on Bloomberg Television. You have to be able to give our customers vehicles you know that are their primary vehicles that are EVs and be able to do that. We need to have range and infrastructure and we need to remove the pain points and so that's what we're doing. Welcome back to the open everyone we are 44 minutes TIME since the European NORP trading a bit of a reversal or certainly bitter pressure on the dicks overall we're more or less holding on to our games one Higher for European NORP stocks. So, focus. Of course, is on China GPE and the previously surprising with that cut because the economy is worse than expected, especially when it comes to house prices in China GPE . Now, to corporate The biggest portrait adjusted profit of any listed company ever driven by high crude prices and production. Oh Bloomberg PERSON 's Middle East LOC energy market reporter and through the Palo GPE joins us now. So Anthony PERSON , what exactly is behind around 'cuz record profit? Is there anything apart from higher oil price? Hi, good morning TIME . Yeah, the high all price is the main factor here. That really boosted the earnings of not only Ramco but a lot of the international oil companies. We also saw some games from the downstream segment which is the refining creating oil, excuse me, gasoline, diesel, those kind of tricks.
We also saw some games from the downstream segment which is the refining creating oil excuse me gasoline diesel those kind of transportation fuels we saw that demand surge in the last couple of months DATE with Shortage of those products as people came out of the pandemic shutdowns started moving around again getting back to the office continuing to order things so we did see a lot of tightness on the refining sector and those earnings really jumped up and that that did help boost our profit however it is really that that cru Production sales that that really made the quarter DATE for them francing. So I think how will they be spending their money? Do we know what they're investing in? Were they investing on expanding the capacity to produce more oil they have a couple of natural gas projects going on which will help them in terms of providing gas to industry in the kingdom for air conditioning for petrochemicals but really they're expanding that oil production capacity from 12 1 million barrels QUANTITY a day capacity now To 13 1 million barrels QUANTITY a day buy that 2027 so they're pretty a lot of cash into that it actually investment is gonna be an increase but there they should be on the low end of their forecasted cap X for this year DATE looking at about maybe 40 1 billion dollars MONEY for the year DATE and they were close to about 10 1 billion dollars MONEY for the quarter so so DATE Or increasing spending but but not by as much as they could potentially fren So and then give me a sense of what I would investors are looking to hear from management in terms of future plans Yeah, well, potentially about the dividend. We are hearing from some analyst talking even to Bloomberg PERSON television only this morning TIME . That they expect dividend increase, later on this year DATE , a rent code did give some Wanna shares out two CARDINAL investors but that was a kind of a small bump some investors maybe looking for more information about what the dividend policy is could orenko increase that with these bumper profits the fact that they have brought down debt they have they're they're not gonna be maxing out on what they could have done on So maybe that gives them a little bit of room here. So we'll see what a room management says two CARDINAL investors in analysis in a call later on today Francine PERSON . Great thank you so much Bloomberg NORP Middle East LOC energy markets reporter he's Now let's get straight to the bloom group. First ORDINAL word news with Laura Wright PERSON . Hi Laura PERSON . Hi France GPE in China GPE . Central Bank ORG has unexpectedly cut its key interest rates. As it runs up support for an economy way down by COVID lockdowns. The need for additional stimulus was Estimates Water levels are at a way point on the Ryan River LOC are expected to steady at an extremely low level this week DATE adding Europe LOC 's energy crunch. Many bargains can't transit past the marker point west of Frankfurt GPE when the water level is below 40 cm QUANTITY according to government data it's already at around 35 cm QUANTITY and is set to drop to 30 cm QUANTITY today DATE . The UK GPE is opposition labor party has proposed extending Britain GPE 's windfall tax on oil and gas companies to fund a total freeze on energy bills over the winter Today DATE we'll put pressure on the government 4200 CARDINAL lb by January DATE Salmon NORP rushty is starting to recover 2 days DATE after being stabbed at a lecture in New York AP GPE has quoted his agent saying we author is now on the road to recovery rushty is said to have been removed from a ventilator on Sunday DATE and is now able to talk it Of the satanic versus suffered serious injuries on Friday DATE after being stabbed multiple times shortly after taking the stage Tribute are pouring in for Wall St and beyond for Andrew Jane PERSON the candle fits child president at former Deutsche Bank ORG co CEO Jane PERSON 's death at the age of 50 DATE Was announced on Saturday DATE after a 5 year DATE battle with cancer. He's been credited with building deutsher banks investment banking business and turning the germ and lender into a global trading power Global news 24 hours TIME a day on it and a boomba quick take powered by more than 2700 CARDINAL
And turning the germ and lender into a global trading powerhouse Global news 24 hours TIME a day on air and a boomba quick take powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries this is Bloomberg Laura PERSON thanks so much Laura PERSON to in London GPE now coming up US GPE lawmakers London Taiwan PERSON for 2 day DATE visit testing China GPE 's reaction after house speaker Nancy Pelosi PERSON went earlier this month DATE we'll have plenty more on that story shortly and this is Bloomberg PERSON . This month DATE as the world watches inflation rise employment rebound and fiscal policies react all roads lead to Jackson GPE home for the Kansas City Peds ORG 2022 economic policy symposium Discuss the economic issues and solutions that keep the world's money moving. Coverage starts August 25 DATE only on Bloomberg PERSON television and radio. When you think space you probably think One space agency that travels under the radar is easter. Which is surprising considering what European NORP space agency is achieved and how vital it is to the global space industry. Please collaborate with pretty much everybody who is involved in space expiration. But Issa PERSON wants to be a leading force in furthering humanity's mission inter space. Missions to Mars LOC . We are going to have to learn, to live, and work off world in a different way. The place where we are going to the to do that is on the moon. Hey Lisa PERSON help humanity take its next giant leap Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE let's go Welcome back to the open everyone well 53 minutes TIME into the European NORP trading day and actually we're seeing not a reversal certainly tempering Of the gangs that we saw earlier in the session European NORP stocks now what gaining one CARDINAL . One CARDINAL 10th of eight% the tax down one 10th of April DATE Now US GPE congressional delegation has landed in Taiwan GPE for 2 day DATE visit testing China GPE 's reaction after house speaker Nancy Pelosi PERSON went to earlier this month DATE the trip could complic For teaching ping and Joe Biden PERSON to meet later this year DATE what joining us now is Bloomberg PERSON 's Bruce Einhort PERSON so Bruce first ORDINAL of all what are the latest details about this delegation and China GPE 's response? What Francine PERSON so this is the first ORDINAL delegation since the visit by Nancy Pelosi PERSON Nancy Pelosi PERSON of course the speaker the house
Response. What Francine PERSON so this is the first ORDINAL delegation since the visit by Nancy Pelosi PERSON Nancy Pelosi PERSON of course the speaker of the house the first ORDINAL speaker to go to Taiwan GPE in quarter of a century DATE so it was yeah A very big deal. This on the other hand is Senator Ed Markey PERSON who's senior senator for Massachusetts GPE . Who is known as a climate hawk. It doesn't have a high position in in the senate ORG . He's chairman of the subcommittee Foreign relations committee in charge of Pacific LOC but I'll do respect to Ed Markey PERSON no Nancy Pelosi PERSON so the question is are you how was China GPE gonna react to this given that this First ORDINAL visit since since she arrived and when she went they followed with days DATE and days DATE of military exercise Yeah I thought we're expecting more military exercises. Yes so the Chinese NORP defense ministry has announced today DATE just within the last hour TIME that there are more exercises taking place unlike last time they haven't specified the exclusion zones areas where there Chinese NORP Would be conducting the exercises so we don't have a whole lot of detail but it is important because it does show that this may be the new normal for for the way that Beijing Visits ORG to Taiwan GPE in the past there'll be congressional visits and we wouldn't really hear about it there was a visit by the chairman of the foreign Certainly not at the level that we're now seeing so it's possible that this may be the way that China GPE deals with things in the in the new era after the Nancy Pelo Visit PERSON . It is worth noting though that the other significance of this visit is it does show the strong bipartisan support for Taiwan GPE in the US GPE Congress ORG even after the visit by Nancy Pelosi PERSON and concerns about whether it's Leading to more tensions clearly from from the way things look in Washington GPE there's a whole lot upside to showing support for Taiwan GPE . Great Bruce ORG thanks so much Brucelyn Horn PERSON there with a very latest on China GPE and Taiwan GPE now that's it for the European NORP market open so this is where we are overall surveillance early edition Commodities ORG also from oil and iron or falling after some disappointing data and a surprising interest rate cut from China GPE further crowded the outlook About economy treasury yields taking up higher the bond curve a remaining deeply inverted pointing to worries that the feds campaign of monetary tightening against high inflation or spark a US GPE recession dollar gaining this is Bloomberg PERSON There is an epic saying in Italy GPE when it comes to family generations that the first ORDINAL generation creates the second ORDINAL generation expands and the third ORDINAL generation destroys And that's almost what happened in the Gucci PRODUCT story. So hit and love together. Now I would have been watching my experience about for those of who says I love you.
In the Gucci PRODUCT story. Now I would have much more experience about for those of who says I love you and then this radio. The Gucci PERSON family was the strength but also the weakness of the label. The situation became dire with Gucci PERSON 's finances. They were not able to pay salaries. They were not able to pay suppliers. Gucci PERSON 's really teatering on the brink at this stage. The difference between political gossip And policy intelligence. Bloomberg PERSON government provides our clients with expert reporting. Analy NORP And public affairs tools that give you the edge and reaching policy makers on the hill. Bloomberg PERSON government Bloomberg Green PERSON bringing you the business data and innovators fighting climate change. Reinventing climate news on TV quick take ant Bloomberg PERSON . Com Ask these surprise interests record this morning TIME seems to be suggesting policy makers are concerned and they want to make a gesture 10 CARDINAL basic points that is almost like not a big deal right it's a small gesture but at least it shows that they care How far the fat had to go? Bloomberg Surveillance PERSON . Well, good morning everyone and welcome to Bloomberg Surveyance PERSON . You're in London GPE and here's what's coming up on today DATE 's program. Surprise rate cards, China GPE , unexpectedly lowest key barring costs, retail sales, and industrial production miss forecast. Slump ORG . Most ever by any listed company and investors look to this week DATE 's Fed Minutes FAC and speakers including Esther George PERSON and Neil Kashkari PERSON what cruise will they offer and whether the FYMC LOC will go big with hikes next month DATE now first thing is first so let's check on the market so we'll get treasuries we'll look at of course European NORP stocks getting someone 10th ORDINAL of eight% or some of We saw earlier on the trading session where we saw three tens of eight% gains are abating somewhat now oil ironor a lot of the energy complex actually falling off some disappointing data but also the surprise interest rate cut from China GPE could further put pressure on the outlook for the global economy and technology On the high Bloomberg GPE US dollar index 1264 DATE . So interesting to look at treasuries as the inverted yield curve continues to invert. So if you look at the bond curve remaining deeply inverted again points to worries that the federal reserve campaign ORG of Montre PERSON tightening against time flation will spark a US GPE Let's go to the European NORP map to see if there's any a big difference between for example a Germany GPE and the Footsy PERSON here in the UK GPE and you can see the Dax down winter DATE of eight% the footsy gaining one 10th CARDINAL of eight% But not huge a variation for the countries. Now China GPE 's economic recovery unexpectedly weekend in July DATE as French NORP COVID outbreaks across the country. Wait on consumer business spending, clouding the growth outlook and prompting the central bank to deliver a Interest rate. Here's what some of our guests have been saying. Data are not exactly very pretty. Perform very strong. It's almost like not a big deal, right? It's But at least it shows that they care. Continues by virgin performance across industries. Those policy tailwinds
Deal, right? It's a small gesture but at least it shows that they care. We're going to see continue style virgin performance across industries. Those policy tailwing sectors like infrastructure, manufacturing, new energy cars, these actually will perform much more strongly. This We're probably lucky to go to see two CARDINAL to three% growth in the Chinese NORP economy. Who won Xi Jinping PERSON gets through the 20th DATE party? Congress ORG . This October, November DATE , will there be a course correction on the economy or not? Not for more and all of this let's bring in our Bloomberg GPE Chief Asia LOC correspondent Key takeaway from the data this morning Weakness across the board from seeing July DATE was meant to be a month of recovery the second quarter to third quarter DATE was meant to be better Actually we saw weakness and retail sales in industrial output in investment or public spending still outships private spending with more bad news on the property market in terms of both investment and highest prices on sales and all of that is what The essential bank to respond by cutting their key interest rate for the first ORDINAL time Genreing it up move by the central bank certainly won't be in and over itself a game changer for China GPE 's economy but it does speak to the idea that the authorities now are quite concerned about the breath and depths of the downturn across the economy under going to pull whatever they can They're trying to arrest that So how are policy makers respond to this from now and I mean the the current wasn't significant but it kind of showed a result from the fact from you know policy makers in What will happen with COVID oh and what will happen with the property market and on COVID oh the authorities have been consistent about sticking with this a very aggressive approach approach approach you controlling the disease they want to get that public health dividend and to do so they're willing to have or Hey economic pain Developers are into other channels to get money into the housing market trying to rev up activity there. I think it's going to be less of story about Will we see more spending at local government level for example so I think big questions about policy in the coming months DATE and a big question about when that pivot might come. What does that mean for the global economy under? I think at the very least Francine PERSON you have to say China GPE isn't the much of a pillar of support for a global growth right now we had the IMF warning only a few weeks ago DATE that the world economy is under brink of a recession Has a strong job market but unlike down to past downturns when China GPE certainly was there to rev up global demand through That isn't happening this time around and it's clear that China GPE isn't going to be a dynamo for a global recovery. Thank you so much and the current there was a very latest of course on the Chinese NORP and world economy. Now, for more in all of this, we're doing A global macro economist that fidelity international ORG and how do you Look of course at this surprise cut in the global context Morning friends and I do agree tomorrow DATE for signal. It's not a game changer. But I think the authorities wanted to surprise the market and send that signal and that was pretty successful but from The focus is really on On focus is on oh code policy and as long as those restrictions are in place it's hard to be much more optimistic from here. So Anna what does that mean for a repercussions on the global economy? Yeah I think this is quite a interesting because we clearly have developed markets heading into quite an abs slow down or recession places and Chinese NORP not going to cushion that blow to the global economy China GPE might To exporting descentation but it's also just the exporting low growth. And that is not helping. And I think this policy differentials between Dam Central Banks ORG , particularly the feds, and previously. We'll meet even stronger Here which is quite hard for the rest of the economy as we know particularly for major market
Hey We'll mean even stronger dollar from here which is quite hard for the rest of the economy as we know particularly for major Hmm. Overall when you look at emerging market it's How much pressure how difficult will it get for a lot of them that are also very tight to the dollar next 6 months DATE ? Yeah I think it will be very difficult particularly given there being hit by a multitude of shocks they were in Ukraine GPE of course related to increase in the energy and agricultural prices and now the increasing cost of funding and the feathers is just focus For the time being on the domestic one and the domestic noted this update actually but the hard data strong so far and so there will keep on pressing with the hooker stands with more hikes putting more and more pressure on emoji market so I think maybe not in the very short term but in the mid from here we Stresses across emoji markets potentially some some dead crisis as well. Dead crisis are there you know countries at the moment that you're warning investors not Into a get out of. Well not not for the campaign not specific countries but I think we clearly know the ones that are very much exposed in our countries like Turkey GPE , Egypt GPE , and some Asian NORP countries in the need of very much exposed to the current shocks. I think there might have When you look at dollar does it go ever higher from here what's a catalyst for it to retrace some of their games? And looking at the financial conditions we do thing that this is very disturbing for the fed ORG . They have east. And there is a massive guard between what we're seeing in the and what we're seeing in the market. As you know, the markets have rallied so much. They are looking through all the troubles, all the shocks, and this is probably my tip for the fed ORG . So, the more easy we see in the financial conditions, the more tightening the the fat will have to do. And in fact, you know, maybe rate That means the dollar will be high until that pivot comes. And I think so much and I've gather a global microcommance have fidelity international ORG stays with us we'll talk a lot more of course about the fed ORG and your energy and your but coming up we also preview some of the big earnings reports you from Europe Including WORK_OF_ART the German NORP chemical giant hang call as price pressures start to pinch that story is next and this is Bloodberg PERSON . Record setting temperatures deadly forest fires receding rivers in this episode of Bloomberg Green PERSON we're focusing on extreme weather What are the science behind the recent heat wave? Now I'm afraid that's inevitable. The consequences of extreme weather there is overall low awareness that heat kills in until recently there's not been as much effort to try and educate people about the dangers of heat. And solutions for the planet to mitigate and adapt. We need government Delete GPE on this and we need government to Regulate ORG and and Of Bloomberg Green PERSON .
Regulate and and and stop sending things out Bloomberg Global PERSON headquarters in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend DATE on Bloomberg PERSON No one covers the world like Bloomberg PERSON . In the coming months DATE do you see that coming 24 hours TIME a day. Bloomberg PERSON . Economics, finance, politics, this is Bloomberg PERSON surreal and certainly additional front team like where you're in London GPE . Now, it's also Earnings week for Europe LOC with some of the continent's biggest reports due to file and what is an increasingly challenging economic environment that's putting pressure on price Baltimore GPE . We're joined by Bloomberg ORG 's April Road ORG to April DATE . Great to have you back on again. So, how's the cost of the crisis impacting? For example, German NORP chemicals maker hangle. Good morning TIME . Yes. So, hang on report is slightly better than expected results this morning TIME . The company also raises organic revenue forecast for the year DATE . It did have a warm that it's earnings were impacted by input cost headwinds. And A bit of a dilemma in that it can either sacrifice its margins to boost volume or raise prices further which could potentially put longer term growth at risk and it's also a question of whether consumers will be willing to accept Those you know potential price increases because of management versus prices too far they're consumers could potentially swap to cheaper brands. So how's Carlsboro PRODUCT on the other spectrum? Beer maker, expect to manage some of the inflation or head wings. Who has that pricing power? Yes it calls book is the next big brewer schedule to report this week DATE the company last week DATE raised its 4 year DATE outlook based on a strong business performance To date. Strong on trade recovery in European NORP markets and strong results in many Asian NORP markets as well it also added that these factors more than offset commodity and energy cost pressures in the first Of the year DATE but going into the second half of the year could be a bit more challenging for Carlsberg GPE as consumers face rising energy costs. So corporate payments maker for example increasingly more competitive how what are we expecting from Adi PERSON and the Dutch NORP Firm. Yes so investors are set to be piling back into text stocks which could be really good news for Series EVENT of monthly DATE declines and the Dutch NORP payment firm as you said which handles transactions for companies like Uber ORG and McDonald ORG 's ended On a really strong note online shopping during coronavirus lockdown's really helped add in gain it's market share and invest and analyst have also pointed out that Adjan GPE 's And growing Presents and reputation and also the roll out of new products still both well for positive growth for AJN ORG . April DATE thanks so much April Roach PERSON there with some of the biggest earnings reports later this week DATE now let's get back to Global macro economist at Fidelity International ORG . Anna, what's your take on Fed ORG ? So, we'll get on to earnings and I guess read across onto your world. But are we expecting too much from the fed ORG ? They can't really fix a supply shock inflation. It can't but they need to keep hiking to control inflation expectations and we have seen some reduction in meditation expectations in market based measures not so much yet in in serving consumer-based measures and I think this is what they're looking at. This is The targeting. Those hikes will likely continue. Until again that growth damage, particularly in the labor market, becomes more of this. And
Until again that growth damage particularly in the labor market becomes more obvious and dental inflation starts declining as well. We know it's it's softer the last prince was softer already. But it's mainly on the headline for the time being. So From the pad to come at least until the end of this year DATE . So I know that you have a 70% PERCENT probability of a hard landing scenario. Do you I mean can leave and avoid a hard landing at this point I think it would be very hard maybe they Obviously financial conditions heavy so I think that could potentially mean the US GPE goes into very mild recession but recession of the last But if they continue hiking Together with what's happening in Europe LOC , what's happening in China GPE . I think that probability of avoiding that hard landing is pretty low. If you see a significant downturn Anna in US GPE Where'd you look at it first would you look at activity or do you look at productivity or housing? While we are looking at the soft day to the soft data now across the board signaling significant weakness going to the levels that we saw in the in the in the last recession so I the COVID recession Global financial crisis particularly driven by consumer but we're seeing that in the industry Services Data ORG is very very soft. But how date is still pretty strong so what we are looking at is actually battling the translation of this softness into her data and of course it's the labor market first ORDINAL of And Your take on Europe LOC it seems that a lot of the markets are actually quite complacent because we talk about you know industry by industry certain industries having to shut down because we don't have enough gas especially going to But that doesn't seem to be priced in. Yeah it's it's strange I think it's it's becoming consensus of course the European NORP recession I think we have believed in it for a while now but the question is still on the depth on the duration on the timing but markets are complete and it's hard to be really out of consensus here they are complacent we see Potential PERSON a shark of course to the corner but to the whole of the Europe LOC area the world of three CARDINAL to four% but potentially up to five% in Germany GPE given all the headwinds so it's it's hard to see how Marcus LOC can continue railing given Duration. Been the headlines all the time but still that the this phase of the war is likely to be even more intense than than we have seen as the Ukrainian NORP forces are trying to retake some of the territory in the south and that means more disruptions on the energy front and and more shocks to growth. Thank you so much and I'm very important reminder from Anna Global PERSON macro convo set fidelity international ORG . Now, coming up market's like just a data coming out of China GPE . We show it's economic recovery, unexpectedly weakening in July DATE . So, we'll get the latest on that story next and this is Bloomberg PERSON . Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving. Coverage starts August 25 DATE only on Bloomberg PERSON television and radio.
So what's the best investment advice you've ever been given by anybody? Pound interest the compounding of returns is an incredible miracle of business finance and human existence Everything you learn is additive every day DATE and Keep PERSON added and don't quit. It's an incredible miracle and it's and it's not just interest it was it was always said about compound interest returns Compound business returns compound human returns They're all very additive cuz you'll learn every day and if you keep at it it's very very Helpful NORP . In your observation of investors, what do you think is the biggest mistake that average investors make? Selling it a long time. And they shall when the prices go down. Yes, or yes. Not keeping Of people have conviction or they invest for their if they invest for the right reasons that just keep at it. Hi to the biggest names in business choose Bloomberg PERSON that is a great question Hey Hey Glad you said. Oh the much more line 60 40 CARDINAL portfolio 60 40 QUANTITY you know a portfolio for generally speaking for most investors would would make sense because at some stage you're on market will make a campaign. We need to give it some more time. There may be better ways to go than 60 40 but I think it's a Hey it still makes lot of sense. Probably close to five CARDINAL or 10. I actually think they're increasing it pretty dramatic to you at the moment as is they're looking for Going outside into other real assets, real estate, private equity, private credit, can can be a healthy addition to the portfolio and really help diversify your return because 60 40 DATE . As I mentioned, it's been a challenging portfolio construction exploiter to have Bloomberg Guester PERSON with their reviews on whether the 60 40s DATE will be inflation. Let's get straight to the Bloomberg ORG . First ORDINAL word news, here's the end gear. Hi, Leanne ORG . Hi, Francine PERSON . Water levels had a key wave point on the Rhine River LOC are expected to steady at an extremely low level this week DATE and into Europe LOC 's energy crunch. Many bargains cannot Zip past the marker at a point west of Frankfort LOC when the water level is below a 40 cm QUANTITY according to government data it has already about 35 centimetres QUANTITY and is set to drop to Centimetres today DATE . Hey. Us congressional delegation landed in Taiwan GPE for a 2 day DATE visit yesterday DATE . They are set to meet with Taiwanese NORP president saying Wang ORG and the other lawmakers. The trip at risks keeping tensions with China GPE high off the house speaking anti Pelosi GPE 's recent visit to the region the UK GPE 's opposition Party ORG has proposed extending Britain GPE 's winfall tax on oil and gas companies to fund a total freeze on energy bills and
To the region the UK GPE 's opposition labor party has proposed extending Britain GPE 's wonderful tax on oil and gas companies to fund at total freeze on energy bills over the winter DATE the plan to be announced by the leader Kia Stama PERSON later today TIME will put renewed pressure on the government to Energy ORG bill could top 4200 CARDINAL lb by January DATE Selman PERSON rush day starting to recover 2 days DATE after being starved at a lecture in New York AP GPE has put it as agents saying the author is now on the road to recovery rush day is said to have been removed from a ventilator on And is now able to talk the author of the controversial novel the satanic verses suffered serious injuries on Friday DATE after being stabbed multiple times shortly after taking the stage tributes are pouring in for Wall St and beyond for a nut Jane PERSON the canter fits Gerald PERSON president and former Deutsche Yo Jane's PERSON death at the age of 50 DATE was announced on Saturday DATE after a 5 year DATE battle with cancer he's been credited with building Deutsche Banks ORG investment banking business and turning the German NORP lender into a global trading powerhouse Global News WORK_OF_ART 24 hours TIME a day on air and on Bloomberg PERSON quick take Powered by more than 2700 CARDINAL journalists sent on the list in more than 120 CARDINAL countries and the Annegarin's this is Bloomberg PERSON a fancy We'll have a full round up of that news. There's that word How are you doing? Immersive experiences that have a sense of active presence. Wow, look at this. One 1 trillion dollars MONEY market by the end of this decade DATE . And whether you know it or not you'll probably be working there in the future. Removing into a world where we're gonna be interacting with computers with our bodies. Definitely trippy. I think the adoption curve is gonna be slow. It's weird. Thing right now. Oh, look at you. If you have no legs. Have to be able to give our customers vehicles you know that are their primary vehicles that are EVs and be able to do that. We need to have range and infrastructure and we need to remove the paint points and so that's what we're doing. It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see
You need to remove the pain points and so that's what we're doing It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse Surprise rate cuts well China GPE unexpectedly lowers key barring cost size retail sales and industrial production is forecast that you want 532 1 million dollars MONEY a day that's the daily DATE profit of oil producer Saddy Ramco PERSON and the second quarter DATE the most ever by any listing company An investors look to this week DATE 's fed minutes FAC and speakers including Esther George PERSON and What cruise will they offer and whether the FMC ORG will go big with heights next month DATE Well good morning everyone and welcome to Bloombrook Surveillance PERSON early edition I'm pronouncing like we're here in London GPE this is what the market is telling us no we're seeing a bit of a reversal from the early games that we had here in European NORP stocks when you look at US GPE stocks futures actually pointing to a lower start we didn't have some gloomy China GPE economic outlook that's cooling some Campaign of monitoring policy tightening against high inflation that actually spark US GPE recession I'm looking at dollar Oil and gas companies with proceeds to fund a total freeze on energy bills over the winter DATE . Now, joining us now is Bloomberg PERSON 's Lizzy Burden PERSON as we look also at some of those tabloids today DATE . So, first ORDINAL of all, Lizzy PERSON , what can we expect from Pure Starmer PERSON ? Well, he's already on the media round this morning TIME . He's dominating the front pages as you can see there which is rare for Kier Starmer PERSON . It's not often he does But this is because he's been so criticized for not taking advantage of the policy vacuum left by Boris Johnson's PERSON zombie government. He's a lame duck until the fifth ORDINAL of Really even Gordon Brown PERSON the former prime minister has come in and told us what he would do if he were in charge so finally Starmer PERSON setting out his plan telling us that he would raise this windfall tax again of course this was originally a labor idea that the conservatives took so he would want to do it again and use the money to help freeze the energy bills Causing the pain for consumers really. And Lizzy PERSON over I mean this this will have a part implication as the two CARDINAL candidates vine to be prime minister. I guess it could take it on board. It certainly puts pressure on them too. Liz PERSON trust there was said that she wouldn't introduce a new infall tax. Wish she soon actually is open to the idea and he's done it before. So if he did when he could do But it doesn't look good for the conservatives to yet again be stealing labor's clothes being on the back floor It's not just transport anymore. The strikes. It's also the barristers, the doctors are threatening to strike. This has been dubbed by the UK GPE press as the summer of discontents who'd just like the 1970 DATE 's winter DATE of discontent. The reason is that unions say because look at inflation it's set to hit more than 13 CARDINAL Try and use that bargaining power. The jobs in inflation data this week DATE are set to show that the labor market still tight inflation still rising to the the workers should have the upper hand But trust says that she if she were in power she would see it as her job to control weed rises yeah it's a difficult argument When the public sector isn't really the one that's responsible for the price rises yeah so true Lizzy PERSON thanks so much Lizzy PERSON Burn in there with a very latest under the UK GPE now China GPE 's economic recovery unexpectedly weekend in Across the country wait on consumer and business spending the growth outlook and prompting the central bank to deliver a surprise interest rate cut the house Economics at the London School of Economics ORG can you first ORDINAL of all great great pleasure to speak to you today DATE what are you looking at in the in the Chinese NORP economy you understand the Chinese NORP economy like no one else really that it should have alert To this. The signs have been you know around for a long time really rising housing prices for so long this is actually the third ORDINAL cycle already in the last decade DATE where the government has been
The signs have been, you know, around for a long time. Really rising housing crisis for so long. This is actually the third ORDINAL cycle already in the last decade DATE where the government has been trying to curb That's what we're actually seeing right now. The Chinese NORP economy is suffering from a combination of course pandemic controls, geopolitical aggressions, property contraction, and a general loss Confidence and in particular where is where what is this policy mean and how how transparent can it be going forward? So can you what does today tell us actually about this alarming slowdown we thought that PBSU ORG policy makers would keep a very cool head about it I know Symbolic PERSON cut but do you think they're willing to do a lot more to support the economy? Well, for sure, this is not enough. And there is room for further monitoring fiscal expansion, but really if we're talking about the property market, it's a little bit too late and too little. Now, to backstop, really a crisis of confidence, you need to do much more and in particular you need to send a really strong message, and it's About helping a consumers and home buyers and loosening the mortgage market that is enough you actually need to give a lot more relief to property developers the very entities they're trying to put an end to this unscrupulous barring and over expansion in the last decade DATE but really it's a confidence problem and you wanna Vicious circle So how quickly do they need to act if they want to break circle? Well it's a little bit late let's say and it's gonna be very hard to achieve the targets for economic growth this year DATE but you know I think what the economy and the generally that that the the companies and the households and the banks and the financial system is looking for is really overall You know support for the property market and more clarity on when you know the pandemic controls are gonna start to loosen up and in still more confidence in the economy I think it really builds it takes time to build confidence and time is not afforded to these property developers according to which you know to substitute 80 CARDINAL Out of 100 CARDINAL of this largest property developers are are under severe stress right now. Yeah, we're looking at, you know, whole price is finding some 11th DATE for the 11th month DATE that is mortgage crisis, of course, in China GPE . Is deepening, can you, is this symptomatic of something bigger or is this actually where it starts But I don't think that there's gonna be a full blown financial crisis or a housing price crisis for one CARDINAL thing a Chinese NORP households have you know 24 1 trillion QUANTITY R&B ORG of saving every year DATE with a 555 one 1 trillion MONEY R&B ORG of debt over all you know you pay a five CARDINAL . Five% interest on it It's actually enough to support mortgage repayments and there are support for housing prices. I mean, China GPE 's really interesting country where you gotta own a property. So, more than 85% PERCENT of the households own a property and you know, what I find is really interesting is that you have a gender skewed country where the market marriage market is particularly competitive Man and you can raise your eligibility as a bachelor if you own a property and there multiple wallets in a household to support you know the young kids to buy a property so there's organization I think there's there's bottom line support for housing crisis so it's unlikely gonna fall really much further and also the banking crisis you know Yes a quarter of banking asses is tied to the property but unlike American NORP banks banks are state owned they're not seven CARDINAL or eight CARDINAL intermediary steps and chains that leads to this complex network of you know financial system there's only one CARDINAL or two so plain vanilla loans and also foreigners are not so exposed to Chinese NORP Although many of them are gonna have to take a haircut Can you I love the fact that of course it increases your eligibility if you're owned a nice house it does make for awkward conversations maybe on that first ORDINAL date it talked to me about the Chinese NORP consumer are they holding Not so much let's say there's the wealth effect from you know kind of property price decline there's again this confidence issue they wanna delay their home purchases they wanna delay their durable good consumption you know you just have to have more clarity where the economies going and transparent
Transparency and also in terms of investment there's you know also a lot of uncertain So it's really precautionary saving at the moment. We're really seeing some of the worst economic situation and decades DATE of China GPE . Can you I mean on the political front so China GPE 's also you know announce some patrols around Taiwan GPE to protest other senators visiting is there a read across with with you know the more the US GPE is seen as provo China GPE . The more they need to prop up the economy or the too late. You know, geopolitical factors is in every day embedded now in terms of Chinese NORP economic planning. There's on the one hand a strive to greater independence in independence in technology and commodities and there's also a greater push for domestic demand boost and so all these factors are Unless unless China GPE 's pushed to a corner we're not likely to see dramatic moves at least not yet. Can you as always thank you so much for all of the great insight Professor of economics at the London School of Economics ORG . Now coming up said your uncle posts the biggest portrait profit of any list of company ever. We'll have the details on that next and this is Bloomberg PERSON . When US GPE inflation numbers are released major drop in the headline number Bloomberg PERSON brings you crucial data at terminal speed. Analysis. Does the fed ORG signal we're done. The market's not believing that the fet is yet done enough. One CARDINAL report is not all it's gonna take. There is an epic saying in Italy GPE when it comes to family generations that the first ORDINAL generation creates the second ORDINAL generation expands and the third ORDINAL generation destroys And that's almost what happened in the Gucci PERSON story So hey Tin I love you Experience about you. The Gucci PERSON family was the strength but also the weakness. Label PERSON . The situation became dire with Gucci PERSON 's finances. They were not able to pay salaries. They were not able to pay suppliers. Gucci PERSON is really teetering on the brink of this stage. We think that's the next secular shift from businesses most influential and instrumental yes it's about renewables This is a level of uncertainty that we haven't had to deal with. Television and radio There's a guest storage itself is not sufficient. We all facing a crisis at the moment. It's been produced by the cut off of Russian NORP gas but it tells us yet again just how volley
It's not sufficient. A crisis at the moment. It's been produced by the cut off of Russian NORP gas but it tells us yet again just how volatile and uncertain fossil fuel prices are. Yes, prices will remain very high and it also may result in some disruption. Not magically get sort of tens or hundreds CARDINAL of of bigger watts of renewable energy before winter DATE . So it is a matter of saving energy. It's a matter of securing sources. To reduce to reduce consumption. The first ORDINAL step obviously is to become independent Russian NORP supplies which Indians NORP can only be managed by additional imports mostly LNG ORG . Here today DATE we've seen the this the reduction in the gas consumption by about 10% PERCENT in the EU ORG . Think the effect of this crisis will be that Europe LOC will be further down the path to emissions reductions that it would otherwise be. Business leaders and regulators that are discussing the energy crisis on Bloomberg PERSON and of course we'll bring you up to date as the situation develops. Now, let's get straight to your Bloomberg GPE business flash. Here's the end year DATE . It's highly. Hi, Francine GPE . Japan GPE 's economy recovered to its pre-pandemic Were relaxed. At an annualized pace of two CARDINAL . Two% below economist medium forecast of two CARDINAL . Six% consumer spending which accounts for more than half CARDINAL of Japan GPE 's economic output led growth water levels have a key wave point Ryan River LOC are expected to study at an extremely low level this week DATE adding to Europe LOC 's energy crunch many barges can't transfer past the marker at a point west of Frankfort LOC when the water level is below 40 cm QUANTITY according to government data it's already at about 35 cm QUANTITY and is set to drop to 30 cm QUANTITY today Wells Fargo ORG the bank that wants turned out In every three CARDINAL home loans in the US GPE now plans to shrink its vast mortgage empire Bloomberg PERSON has learned Wells Fargo ORG is no longer committed to a ranking number one CARDINAL in the business that comes after years DATE of To avoid costly regulatory probes and hits to the banks a reputation peloton is embarking on a sweeping overhaul which includes cutting 800 CARDINAL jobs hiking prices and also shutting stores the CEO told employees the changes are changes and are essential making the company cash flow Peloton Stock ORG is down nearly 90% PERCENT over the past 12 months DATE and tributes are pouring in from Wall St and beyond for and shoot Jane PERSON the canter fits Gerald PERSON president and former Deutsche Bank ORG coat CEO Jane PERSON 's death at the age of 59 DATE was announced on Saturday DATE after a five CARDINAL Battle PERSON with cancer. He's been credited with building deutsher banks investment banking business and turning the German NORP lender into a global trading powerhouse and that's your Bloomberg GPE business flash Bloomberg PERSON joins us next. Anthony ORG , first ORDINAL of all, is there anything else behind the ramco record Part from high oil prices. I mean high all prices were the main factor here around just been pumping a crude out increasing production throughout the year DATE even though they were subject to opac plus quotas where they have been reducing production to help the market recover from the COVID pandemic. They've Increasing production over that period. So, at the time is prices were going up. They've been putting more oil on the market. So, that's been really helping. At the same time, we've had this real big crunch on refined products. So, that's a gasoline, that's diesel, all these kind of transport fuels that we've been using so much Division ORG that's been up by something like 175% PERCENT was the increase in eBay ORG for that for that division francis So how are they gonna be spending this money? Yeah I mean a lot of that is gonna be going back into their wells to produce more oil and gas gas for use in the kingdom in power plants electricity petrochemicals and that's helping expand the Saddy PERSON economy and then oil they're gonna be pumping that out
In the kingdom in power plants electricity petrochemicals and that's helping expand the saddy economy and then oil they're gonna be pumping that out selling more of that they're looking to increase exports of crude oil as well as they start to use less of At home for those industries. So, it's really gonna be an investment in that and investment to increase the capacity so they can put more oil onto the market as they see demand continuing to increase throughout the rest of this decade DATE . So apart from that this is reinvestments do we know how much I'll give back to shareholders through dividends or buybacks? Well, there are maintaining their dividend policy. The annual DATE dividend is about 75 1 billion dollars MONEY . That's the world's biggest dividend. Payout and so far, they're maintaining that. They've had free cash flow that was nearly double what the divi Payout is so so finally they're making the money to to make that payout we don't know yet if they are gonna increase that later this year DATE although we have been hearing increasingly from some endless discussing it that that they would expect to see that with these big bumper oil prices some of the other International oil companies have been giving money back to shareholders. We did CRMC a small gesture with some bonus shares given to shareholders but we haven't yet seen that that dividend increase. Yeah. Debt the year end ratio is coming under control. So they may they may come to that. We may hear from here from management about Later today. I mean the other story that really caught my eye is something that you've been covering all along and certainly Morning where we found out that actually Prince Al Walid PERSON had a significant amount of exposure to some of the Russian NORP energy companies in it's unclear weather this was pre your post war. Yeah, exactly. He made those investments in about three CARDINAL Russian NORP energy companies in February DATE . We don't know whether that that was before the invasion or after. So, we don't know what really wasn't thinking there. Maybe he saw kind of a fill up coming on those shares. If an invasion was avoided, That didn't happen and those securities have gone down. We did see a lot of Saudi Arabia GPE support for Russia GPE . After the war, you know, they they didn't throw a Russia GPE under the bus as the US GPE would have wanted when the US GPE was criticizing Russia GPE for that invasion. A lot of people have been questioning, you know, The financial benefit foresight from Russia GPE we don't see a lot of investment going in I think that same argument goes for this I will lead investment you know he put the money in has he gotten anything back yet we don't know what these prices he hasn't seen. Thank you so much Anthony PERSON that middle east of course our Middle East LOC to energy market report to Anthony DePala PERSON now coming up it's been a while since it's grabbed art and June DATE Bitcoin briefly are passing $25 thousand MONEY on Sunday DATE for the first ORDINAL time since mid June DATE before sleeping back and then a broader crypto rally so we have more of That's next and this is Record setting temperatures deadly forest fires receding rivers in this episode of Bloomberg Green PERSON we're focusing on extreme weather we'll explore the science behind the recent heat wave Morning TIME .
Seating rivers. In this episode of Bloomberg Green PERSON , we're focusing on extreme weather. We'll explore the science behind the recent heat wave. More extreme than it is now. I'm afraid that's inevitable. The consequences of extreme weather there is overall low awareness that heat kills and until recently there's not been as much effort to try and educate people about the dangers of heat. Mitigate and adapt. Government Stimulate And and Certain things happen. Headquarters in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend DATE on Bloomberg TV ORG quick take ant Online. Global economy is changing as the world recalibrates. Japan GPE 's leaders are forging a more innovative and sustainable path forward to revitalize the nation. Giants ORG . Policy makers and pioneers tell us how they're doing just that. Every week DATE on Japan GPE ahead right here on Bloomberg Television ORG . Economic finance politics this is Bloomberg PERSON surveillance early edition of Francy like we're here in London GPE now let's turn our attention to the crypto space yesterday DATE Bitcoin briefly surpassed at $25 thousand MONEY for the first ORDINAL time since mid June DATE before sleeping back as momentum continued from course unexpected US GPE inflation data now for more and all of this we're joined by our Bloomberg PERSON crypto She's Emily Nicole. Feel like a bitcoin. It did appear. To have a bit of a rocky start this morning TIME after a bit of a run up in the weekend DATE . So what exactly is going on? So yesterday we definitely saw a bit of a rally for Bitcoin. It was coming off the back of some more payroll data or job jobs data from the US GPE anyway on Friday DATE . Which seemed to suggest that you know there are fewer rate hikes in future or at least less monetary tightening than we thought. And all of that helps to contribute to a Environment for risky assets like crypto. But this morning TIME as you said it's definitely been a rocky start. It went up to 25 CARDINAL K again this morning TIME and then has gone down below 24 CARDINAL K. We're now seeing about a percentage down a broader crypto rally as well as also kind of Overall it does seem like we've had a bit of a broad rally when it comes to crypto in the last month or so DATE . Yeah it in the last month or so DATE as you point out like the the data that's been coming out from regulators have been broadly positive in terms of what they expect to do in with monetary policy and with economics and that then helps risky assets like crypto so for bitcoin it's definitely about bouncing off that and that kind of points towards how investors view these assets now you know They're all most part of the traditional whiskey asset basket. Not like, you know, last year DATE when everything was was a far or fomo. So, are you expecting this to continue? That it's becoming more mainstream and there It will become more stable Weather not every staple. Big drop if you were to think about what it's like compared to a different asset that's not crypto. But definitely over the last year DATE what we've seen is that crypto is becoming more and more correlated with traditional text stocks with SFP 500 CARDINAL . That correlation point has been at oh point For as long as I can remember at this point. So definitely behaves like any other risky acid. And that kind of lends The fact that we do see these ups and downs as of when economic data comes out and you know, talk to us about the difference between bitcoin and actually some of the other crypto assets. Yeah, so in the last few days DATE , we've seen a lot of differences actually between Bitcoin and it's younger sister. I guess I need to call it Ethereum. What Ether? Because Ether itself Due to undergo a major upgrade next week DATE around maybe around the 15th DATE there's what we're expecting at the minute TIME two CARDINAL it's on the line network that means it's gonna be shifting away from the way it currently mine's tokens and validates transactions to Different method.
Maybe around the 15th DATE there's what we're expecting at the minute TIME two CARDINAL it's on the line network that means it's gonna be shifting away from the way it currently mine's tokens and validates transactions to a different method that is supposed to be a bit more Bit more efficient. We'll help reduce things like transaction fees. Because that has been in the pipeline for so long. And we're now coming to those final stages of when it'll begin. People are kind of pric Optimism NORP and that's also bouncing other coins that are similarly based on that blockchain that does claim and the other underlying networks. Emily, thanks so much for all the great updates. Emily Nicole PERSON there on Crypto ORG and Bitcoin PERSON . Now, Bloomberg PERSON 's around. It's early edition continues the next hour TIME with Matt Miller PERSON , Katie Lanes PERSON , and here in Anna Edwards PERSON will be China GPE economic outlook of course it started to hurt the stocks rally we also look at treasury treasury yields at ticking higher the bunker remaining deeply inverted pointing to worries at the Federal Reserve Campaign of Montre ORG tightening against high inflation wool spark a US GPE recession so we'll have a look at that the dollar gaining and this is Bloom My grandfather got into the mutual fund business cuz the average investor could not get a diversified stock portfolio and it was too dangerous to put you know your Savings in it just a couple of of companies. So, the mutual fund was created to give a diversified expert management at a reasonable price. Hey Have a phenomenal on where companies are waiting much longer to go public and so in 2000 DATE the average company went public after 3 years DATE now companies are waiting 9 to 10 years DATE cuz there's so much money available in the private markets as a matter of fact there are half CARDINAL the number of public companies that there were in 2005 DATE So the question is that return that used to be captured in the public market is now captured in the private markets but the problem is you know is you're really tied up for a long time when you invest in a private equity fund And so trying to figure out a way to solve the same problem my grandfather was trying to solve which is how do you bring those returns responsibly the democraization of the of the private markets to the retail investors and I describe it as a bit of like running with scissors this is a great tool Use it appropriately. Bringing it in to the Averaging Bestor ORG . The difference between political gossip And policy intelligence. Analysis And public affairs tools that give you the edge and reaching policy makers on the hill Currencies ORG on which you rely. Bloomberg PERSON government
Over the past few weeks DATE has made it clear. It wants to go higher. It got a little spook by the idea that due political content is a rising And there's gonna be a calm before the storm. I think Over the past 20 years DATE but it's been Significant Bloomberg PERSON surveillance early edition with Anna Edwards PERSON Matt Miller PERSON and Kaylee Lines PERSON . 10 AM TIME in London GPE . 5 AM TIME in New York GPE , 5 PM TIME in Hong Kong GPE . Our top stories today DATE . China GPE 's central bank surprise. The PBOC cuts interest rates to boost an economy hurts COVID lockdowns and the property slump. Another US GPE congressional delegation visits Taiwan GPE Beijing GPE responds by adding military patrols around the island. And a major ship for Wells Fargo ORG it will shrink the mortgage empire that once accounted for one CARDINAL in every three CARDINAL US GPE home loans. Good morning TIME . Welcome to Bloomberg PERSON surveillance. Early edition. I'm Guy Johnson PERSON in London GPE with Matt Miller PERSON and Kayline PERSON 's in New York GPE . Anna Edwards PERSON is off today DATE . Kaylee PERSON , the action is in Asia LOC . Yeah, and in China GPE Typically guy after that surprise rate cut from the PBOC cutting both the 1 year DATE and 7 day DATE lending rates by 10 CARDINAL basis points so that really it was Interesting week on the session overall in Asia LOC . Yes, you have the MSCI Asia Pacific Index positive by about Of one% ORG but that was largely due to outperformance of Japan GPE . Meanwhile, Chinese NORP stocks were down because of course that rate cut was quickly followed less than Hour later TIME by a series of disappointing data points from the Chinese NORP economy retail sales investment all are missing expectations so that took the CSI Down about a 10th ORDINAL of one% ORG in the bond market we saw the Chinese 10 year EVENT yield coming in eight CARDINAL basis points at two 66 DATE that is the lowest level going back to May of 2020 DATE and the meanwhile the Chinese NORP US GPE one of the biggest under Among the Asian NORP currencies. Six CARDINAL tenths of one% ORG trading right now at About a half a percent CARDINAL . Now, we had a really strong cash trade on Friday DATE . We were up about two% ORG more than two% ORG on on the Nasdaq ORG cash trade. So, giving up some of those We're also seeing investors buying the 10 year DATE treasuries and really across the curve pushing yields down right now 282 76 CARDINAL is a level we're looking at here and the US GPE dollar index is also Some strength. So, this is really signs that investors are looking for some kind of safe haven because you saw the reverse for example, previously Treasuries ORG and this dollar strength has just continued throughout the morning TIME . Bitcoin on the other hand is down right now. More than one% CARDINAL that tends to be corally with risk asset Holding ORG over $24 thousand a piece guy what do you see in terms of the European NORP games? They're very fractional and to be honest if you take a look below the surface mat they are very defence suit so you got health care bouncing back today DATE utilities are up food of beverages tracking a little bit higher that is a very very defensive sector European NORP activities getting a little bit attraction this morning TIME but not much. Remember, you're up highly exposed to what is happening in China GPE . That's where the narrative is. That's where the weakness is right now. And Europe LOC 's got its own problems to contain with as well. So European NORP expertise really just drifting sideways at the moment. We are watching Cable rate as well down by around half CARDINAL of one% today DATE . You've got more weakness coming out of the housing market here in the UK GPE . Higher rates beginning to bite. We're gonna pay attention to that. To see whether it rolls over further from here. You've also got crude coming low as well on the Chinese NORP data. There's a multitude of factors coming together here but nevertheless China GPE was and continues to be.
It rolls over further from here. You've also got crude coming along as well on the Chinese NORP data. There's a multitude of factors coming together here but nevertheless, China GPE was and continues to be a big consumer of crude. The softness in the data worth paying attention to and then we come to the line. What is happening on the rise this morning TIME ? We're at a 30 Centimetres. We are below the 40 cm QUANTITY of which the rain at Cal PERSON near Frankfurt GPE is navigable. We are below that level. Effectively very little traffic going up the line from Frankfurt GPE . That is gonna have Kaylee a major industrial effect and we're gonna continue to watch bat feeding into the data over the next few Yeah but climate crisis exacerbating an energy crisis Exacerbates and economic crisis. Definitely something we will continue to watch. Not just today DATE but during the entire week ahead DATE . And there's plenty Retailers Figures Of the US GPE consumer and the US GPE economy as a whole. Also, on Wednesday DATE , the federal be releasing minutes TIME from it's July DATE meeting. What are they sign GDP data out later on and EUCPI Central ORG bank surprise and of course the bad data Kaylee PERSON that you listed the PB Retail industrial and investment data all point to a sharply slowing Correspondent ORG joins us for more so and to how bad is it? It's quite bad. July DATE was meant to be the month DATE of recovery for China GPE 's economy and said we had a suite of data today DATE . All surprising on a downside, retail spending less than expected industrial Since January DATE move in of itself will not be eh a game Slow ORG down than expected eh across the whole economy. How stable is slowdown be what do you think we're looking at in terms of GDP now this year DATE and more policy action what sort of size will we be looking at? Without the big question guy what kind of a pivot will we get on policy now until a recently living quite disciplined they haven't rolled out a kind of physical stimulus we've seen in Downtowns that central bank has been offering support but not hugely so the question is will we get a pivot on COVID oh all the messaging on that so far has been there will be no pivot on COVID oh then the Comes what will it do when the real estate side of things will a government trying to inject money into those developers and try and really arrest the slide and prices and activity there so I think most of the focus will be on government spending on a Real estate more so I think than any abrupt pivot from COVID oh or any major action from the Central Bank ORG . Thank you so much. Meanwhile, elsewhere in Asia LOC , another US GPE congressional delegation, this Led by democratic NORP senator Ed Markey PERSON is visiting Taiwan GPE China GPE says it is fighting back by adding more military patrols around the island the congressional trip comes less than 2 weeks DATE after one CARDINAL by house speaker Nancy Pelosi PERSON led to unprecedented Chinese NORP military exercises and reorder Bloomberg Washington PERSON correspondent joins us now with more from D Or is there another motive for this next round of visits? What speaker Pelosi GPE 's visit was really the one that sent shock waves throughout China GPE really because of her rank not saying that Ed Markey PERSON is centered for Massachusetts GPE isn't important but it's a different level a different level of status of speaker Pelosi GPE going versus The speaker of the house and already what we have from the Chinese NORP defense and the Chinese NORP military talking about patrols, talking about the United States GPE and showing again that they're testing China GPE , that this is an infringement on their sovere We haven't seen the response that we had when it was speaker Pelosi GPE less than 2 weeks ago DATE which included last
Which included live fire drills as well as was likely ballistic missiles that went over the island of Taiwan GPE and even Japan GPE sang and ended up in their economic exclusion zone but Does test the waters of potentially maybe more blowback from Beijing GPE . Speaking of blowback senators are now asking to see the classified or confiscated documents from the FB Residents what do we know? This is really a bipartisan issue right now. You have Republicans NORP and senators, you have Mark Warner PERSON , Virginia GPE , you have Marco Rubio PERSON , they're both chair and vice chair of the Senate Intelligence Committee ORG , what they are asking for is for the FBI ORG to disclose to the panel Cuz obviously these are classified and sensitive to materials that they want to be able to see this and really obviously this has become very political but in congress ORG everyone wants to know what was in these documents these Washington GPE is partisan when it comes to the rhetoric. Republicans NORP wanna get to the bottom of why this raid was justified while the Democrat NORP Really looking at the gravity of the situation and why the former president even had these documents in the first ORDINAL place. Thanks very much Emily Hall PERSON done joining us from DC GPE on the latest not only on what is happening with this trip to Taiwan GPE but also what is happening surrounding Donald Trump PERSON now after years DATE dominating America GPE 's mortgage market Wells Fargo is Planning ORG a major retreat from home lending here to discuss the applications of this strategic shift inside the country's third ORDINAL largest bank is Bloomberg PERSON 's Charlie Wells PERSON appropriately names Charlie PERSON let's talk about the size and significance of this shift Taking that famous stage coach in a very different direction. Unique in the mortgage lending space. So, after the financial crisis with a course, it's connections to America GPE 's mortgage market. Other major lenders in the United States GPE backed out of the sector but Wells Fargo ORG charged right forward over the past decade DATE , they actually brought in 57 1 billion dollars MONEY in fees from their mortgage operations which is hugely significant. Some of the negative sides of this are happening. So, mortgages of course are incredibly regulated. They're incredibly complex and this seems to be an indication that executives inside the bank are taking a look at some of the missed steps that have happened even over Distress borrowers and also some reporting from Blueburg News ORG that found that there was a Gap in approvals for white versus black people who wanted to refinance. So, this seems to be executive saying, it's just not worth it to go so hard anymore. Where does this charlie leave the US GPE housing market? I mean, Wells Fargo ORG was an incredibly important supplier is an incredibly important supplier of Yeah Matt PERSON that is a really great question I think it's something that everyone is trying to figure out as we continue to get indications of the US GPE housing market is slowing down right we've got mortgage costs going up we've got an economic uncertainty making buyers less likely to become customers of banks like Wells Fargo ORG Over the past few months DATE and also when we think about the ramifications for this within financial services we see this increased trend of financial disintermediation where large lenders aren't necessarily playing every role in consumers lives we're seeing competitors like rocket mortgage Take up some of the market share that Wells Fargo ORG had before. So, this is going to bring out significant changes in the way that Americans NORP buy homes. Alright, Bloomberg PERSON 's Charlie Wells PERSON great reporting. Thank you so much and of course, you can read today DATE 's big take on Bloomberg PERSON . Com or by typing Big take into your terminal. Meanwhile, in other banking news, Reuters ORG is reporting that several major Wall St banks Facilitate ORG trades in Russian NORP debt in recent days DATE most US GPE and European NORP banks of course had pulled back from the market in June DATE after treasur So continue to keep an eye on that story but first ORDINAL we also wanna check on some stocks moving in pre market trading here in the US GPE and I have to With bed bath and beyond which is one of the meme stocks that is seen a very real resurgence in recent days DATE . It's up in 12 Past 13 CARDINAL sessions higher.
Which is one CARDINAL of the meme stocks that is seen a very real resurgence in recent days DATE . It's up in 12 Over that time really for no good reason other than that it signals that Or the bell. Complex did you see commodity prices down in part due to concerns around Chinese NORP demand after that string of disappointing econ Also in related relation to that China GPE story or seems some of those big tech ADRs Also way down in pre-market trading Alibaba one it's down about one CARDINAL . Two% of course it has the sensitivity to that Chinese NORP consumer Guy. Absolutely we're gonna look at the macro element all of this as well could the Chinese NORP currency come under significant pressure how will Beijing GPE respond Derek Anthony MUFG PERSON head of research for global markets EMEA ORG joining us in the next half hour TIME to give us a take on what is happening there Iris Pang PERSON I and G's chief economist for greater China GPE also weighing in on Story that is all coming up this is Bloomberg PERSON . You're so intimately linked to the future of the UK GPE what do you see when you go to branches and in the country yeah A lot of anxiety at the moment. You know I think the recovery from the pandemic has been and is continuing to be very strong so I think we're seeing the economy recover but with rising interest rates with inflation. Those those are things that you know peoples and families and businesses haven't had to deal with for 10 years DATE . So a lot of Soon as today DATE haven't had to operate in that environment so it is causing quite a lot of Which means you know for us because we're up and down the country in branches and offices we can spend a lot of time talking to businesses and helping them plan and deal with it but it is it is very different and it's not something people have had to operate in for a long time. The difference between political gossip Policy intelligence. Analysis. And public affairs tools that give you the edge in reaching policy makers on the hill. Bloomberg PERSON government All roads lead to Jackson Hole GPE for the Kansas City Feds GPE 2022 economic policy Discuss the economic issues and solutions that keep the world's money moving. Coverage starts August 25 DATE only on Bloomberg PERSON television and radio. This is Bloomberg Surveillance PERSON early edition on Matt Miller PERSON with Kaylee Lyons PERSON here in New York GPE Guy Johnson with us out of London GPE . Considering all of the headwinds geopolitical energy concerns.
Cheap the VixSis PRODUCT . Very difficult and it's on right you have to look at relative to a lot of things but this is where it doesn't make a lot sense to me it's low relative to realise vault it's low relative to at the money implied vault it's low relative to cross it vault it's also low relative to longer term vote and that the Of that of course is it makes it very hard to go long with ex cos the negative carry you have to slide down the car so that maybe is one of the things that's holding it back. Simon what about another asset classes I'm looking at a significantly stronger dollar this morning TIME off the back of that week DATE Chinese NORP data what is FX ORG vola So FX Falls ORG to say it's kind of been rising relative to to other volatilities we've also fixed income vault is quite high so it's kind of makes the vecs look even more ehm over and out Here. I mean the the dollar really is is very interesting. It is own right. It's been rising. It'll continue to rise. I think as long as the fed ORG is is looking like it's taken rate hikes much further than everyone else. But really when you have that effect The fat raising rates it creates a lot of ripples across a lot of us it's across the world. So I would make make it easier for me to understand in layman's term why it's hard to go along the vics. You said something about negative carry and you have to slide down the curve. What do you mean? So when you put like a tree like that on you put it on in the futures and when you have this very steep curve you're putting it on at much higher level and basically if nothing happens you slide down that curve so you're actually your volatility is going When you want it to go up so that's the the the curse of negative carry. How much of this is seasonal? There's there's a seasonal aspect but I think it's very difficult to talk with seasonals in the sort of Very volatile world that we're in right now. You know, normally in quiet times, I think seasonals make more sense. But right now, we've seen so much big moves. It's very difficult to see how your seasonals are gonna have like As much of it impact as they would normally have Well and of course we're in a season Simon where we're not going to have that much better reserve action or at least any decision on hikes September DATE from your assessment of these markets have they overdone it on the expectation that the feds gonna cool off Well, I think this this is really what does make sense to me. You know, the fed ORG is been very explicit that it's gonna be less explicit in offering guidance going forward. And in that Okay the market might be right we're gonna get rate cuts next year DATE but if it's wrong it's gonna be potentially very wrong because inflation is a very non linear situation and that means that rates might go up a little bit The risk is they could go up considerably higher. If you look at Taylor Row PERSON , you're looking another 500 CARDINAL basis points. So, to me, it shouldn't be that tail risks are getting priced lower. You should be rising tail risks and that would add to the vics right now. That's Is kind of in congress ORG to to what's going on. So protection is cheap. We're going into some fairly big events. Jackson PERSON , how's coming up? Got fair meetings in September DATE . There's other data that we need to be paying attention to between now and then. When would you expect things to start to Normalizing the sense of well stop the vics going back to what you would describe to being a more reasonable level I when you think trade is gonna step up and go now's the moment I need to start Action. We've also had a big run into this. Vol's come down but I'm now going into Jackson Hole GPE where the Fed ORG could push back. I'm now going into the the September DATE rate heights potentially when the fed ORG could surprise. When do we when do you expect to start seeing this changing? Jackson Hall FAC I think is is a big risk event but I think already we're seeing one CARDINAL thing right now if you look at the Vicks itself you can buy coal options on the vics so the Vix PERSON is low if you think it's gonna be higher you can buy call options yep already traders are now buying considerably more call options and put option Yep that is often proceeded rises in the vec so maybe we're beginning to see something right now the protest is beginning to unfold Simon Grace up thank you very much indeed Simon Whites of Bloomberg Markets Vicks maybe about to move. Keep an eye on that one. Check out what exactly the analysis surrounding all of this is. You can do that very simply on your Bluebird terminal. MLIV go on the Bloomberg PERSON . This is. Bloomberg PERSON .
We make it very transparent to the shopper before they accept an order. What's the order is gonna look like? How much we're gonna pay them? And how much like the consumer is paying them? And so they can decide whether they take an order or was else it refuse yet? And that's the kind of flexibility that Transparency that they want. Are you seeing a labor shortage right now? And what are you doing to combat that? It's different in different places. All demographic of shoppers is completely different from food delivery and write sharing. We've 70 And women and half CARDINAL of them moms and that's because a lot of the job on Instagram NORP is very different and just being in the car with strangers. It's about like going to the store, doing a good job of customer service, of really picking the right products for the consumer and we are seeing that being very appealing to women. The seven 1 trillion dollars MONEY industry there's a lot of ground to cover prepare for an economic hurricane Thank you. Bloomberg PERSON . Some of my money outside of the soccer. It all comes down to the details here. Bitcoin is mine. Now keeping you up to date with news from around the world here is the first ORDINAL word in the UK GPE the labor party ORG has propos Liberation Speculation ORG it could supply we For Russia GPE 's war in Ukraine GPE . Was announced Saturday DATE after a 5 year DATE With cancer he spent two decades DATE at which bank and transformed it into a global trading powerhouse onto Jane PERSON was 59 DATE
What's 59 CARDINAL ? 700 anniversary QUANTITY of Dante Alegary's PERSON death has triggered the work of many institutions and offered a very rich schedule of events Hey and set the crochet we present one CARDINAL of these projects that suffered a difficult start because COVID-19 has stopped the project that was shared by the opera desanti coche by the franciscan community. From Florence Minnesopi PERSON and the fun for religious building of the internal minister. Today Feliz Limosani's PERSON project is finally enjoyable In the party chapel the marvelous architecture by Felipa Bruno Leshi Images ORG from the divine comedy created by the French NORP illustrator Gustoff Dore PERSON through these images we can live the violent emotions of hell the weight of purgatory and the sublime joy of paradise The digital humanity the digital humanities are a cultural occasion to exploit. Summing up it's about merging humanistic disciplines with new technologies. I find this to be an innovating and modern tool to update culture. Cultural heritage becomes something to hand over to the new generations and not to be put aside so it's about using technology pixels and binary code with a human and humanizing content. This is blue books surveillance early edition and here's what you need to know China GPE cuts the PBOC is forced to reduce rates after week DATE retail industrial and investment data all point to a sharply slowing economy Taiwan GPE tensions rise again as the US GPE congressional delegation led by Senator Ed PERSON He touches down on the island. With fresh military action and mortgage moderation after a series of scandals Bloomberg PERSON learns the Wells Fargo ORG is planning to read from its prime position in America GPE 's home loan markets Anna Edwards PERSON is off today DATE Matt PERSON what's it looking like pre market well we're seeing futures off maybe not completely surprising considering all the disappointing data that we got out of China GPE and consider Games that we saw on Friday DATE we were up almost two% on the S and P more than that on the Nasdaq so we're giving up Turn around and I think when I look at my worksheet which is your worksheet guy cuz I stole it from you. This is Interesting move that I see in markets today DATE . The 10 year DATE yield which had been climbing that
My worksheet which is your worksheet guy cuz I stole it from you. This is the most interesting move that I see in markets today DATE . The 10 year DATE yield which had been climbing then turned around and came down around 4 o'clock TIME this New York GPE time 9 o'clock TIME London GPE time and that is I think around headlines coming out of Taiwan GPE or out of China GPE that they're starting fresh military actions there we have investors seeking Bitcoin NORP coming off which makes sense With other risk assets but still holding up over $24 thousand a piece. Kaylee PERSON , what do you see in terms of the pre-market movers this morning TIME ? Well, one CARDINAL other asset Sub $ 90 MONEY a barrel today DATE and in part that is due to demand concerns out of China GPE with that disappointing data overnight really overshadowing the news of a rate cut coming from the PBOC so while those Equities Two and a half PRODUCT to three% and it's speeding through to the metals complex Which is down about two CARDINAL . Seven% before the bell guy You got that first ORDINAL . We see the same thing here in Europe LOC , Kaylee PERSON . You are seeing the commodity stocks under pressure. It's not any oil but it's also the the minors as well. Bottom end of the stop six under this morning TIME . Top end, much more Defensive NORP bias in the market this morning TIME so the healthcare sector's bouncing back you're seeing food and beverage tracking a little bit higher so defensive tilt to the market in terms of the sector story but that means in aggregate the stock 600 CARDINAL is up just a little bit we're up by three CARDINAL tenths of one% ORG the cable rate under a little bit of pressure the dollars broadly week across the piece today DATE and That goes for euro dollar as well. And what we're seeing there for is a little bit of weakness Beginning PERSON to rip out and that could have a big effect. The dollar when it moves like this can have a very big effect. You can house prices also coming under pressure further factor for Sterling ORG to consider. Brent's down Kenny PERSON was just mentioning what is happening there. And we continue to see what is happening in Germany GPE as a big problem as well. The Ryan PERSON is now below 40 cm QUANTITY which is the mark Stabilizing a little bit but still a very low levels you know for someone you know who lives in the imperial in the realm. Using metric terms. What is that in inches? Just below 16 inches QUANTITY . Alright, excellent. So, we now all understand how low Ryan River LOC levels are. Let's get to our next guest. Respected for decades DATE for providing a decent profit and pleasantly low volatility. The 60 40 DATE portfolio generated an 11 CARDINAL So far this year DATE is it time to put that strategy to rest a question that seems that we're always asking or is it just the matter of modifying some of your holdings here's Investors responded to the latest M live pulse survey. Oh the much more line 60 40 CARDINAL portfolio. 60 40 CARDINAL you know a portfolio for generally speaking for most investors would would make sense because At some station one market will make a comeback. We need to give it some more time. There may be better ways to go than 60 40 but I think it's a base case. It's still makes a lot of sense. Stop 40% PERCENT in bonds is probably close to final 10 CARDINAL I actually think they're increasing it pretty dramatically at the moment is is they're looking for Going outside into other real assets, real estate, private equity, private credit, can can be a healthy addition to the portfolio and really help diversify your returns because 60 40 DATE , as I mentioned, has been a challenging portfolio construction expo year DATE to have. So it's interesting one of the things that the 60 40 DATE has not had to deal with over the last few years DATE has been significant currency volatility we are now getting that currency volatility particularly in the form of a significantly stronger dollar One CARDINAL factor behind all of this obviously is the slow down that we're seeing and the rest of the world. China GPE no exception. The data out overnight TIME causing the PBOC Cut rates is there more to follow what impact could that have on the Chinese NORP currency view and let's try and answer some of these questions Derek Albany PERSON MUFG ORG had of research global markets EMEA ORG and international security is there a good morning guy the Chinese NORP started cutting rates The currency is gonna respond they're probably gonna have to do bigger rate cuts further down
International security. Is there a good morning TIME ? The currency is gonna respond they're probably gonna have to do bigger rate cuts further down the road how weak could the Chinese NORP currency get? I think obviously if we're in for you know a sustained period of monetary easing that certainly is gonna put down with pressure on on NY. Pause though because it's not it's not a completely obvious answer And I think you have to also take into account what's happening on the trade side and over the last 3 months DATE we've had a trade surplus Are nearly 280 1 billion dollars MONEY . That's that's the largest on record. Now obviously it's party related to the week import story that resulted in the the monitor easing. But are also reflects 18% PERCENT annual growth in in exports So even though we've had capital account outflows bond markets equity markets the balance of payment statistics last week DATE showed nearly 100 1 billion MONEY of outflows in Qtwo It just doesn't match what's happening on the trade side And until that change is dramatically I'm quite reluctant to become bearish on on CNY and CNH ORG so today DATE CNHO or dollar CNHO half a percent this was a surprise but only last week DATE in the quarterly DATE eh monitor policy reports it was actually slightly hawkish yeah the interpretation was that they're more concerned about So this big surprise has resulted in what's happening today DATE but ultimately it might be premature to be calling for pronouncing why weakness at this point More people talking about the fact that we may have seen the peak of the dollar. Your thoughts? I don't think so. I think what's very interesting over there. Now, I'm talking to short term because you know, our view was that equity markets were probably going to drop in the 30 35% PERCENT and that that would prompt the pivot from the fed ORG so as the equities were coming down the dollar would strengthen further the pivot would come the dollar would reverse But we haven't had that. Financial conditions are easing. Now the fat will never come out and say that I want to see the acute moving higher but ultimately it's complicating what they need to do. Time to result in short time right expectations. Yeah. Data's actually picking up as well. Gasoline prices are down from $five to $four MONEY . That's a big. That's a big impact for consumer confidence and maybe the retail sales data this week DATE is gonna is gonna be stronger than expected. So, I think of the short term. When you look at what's priced for the rest Year DATE . There is a chance the market's gonna start pricing in more. Dude, they're pretty, they've come pretty close to saying that equity, markets that Wall St needs to feel some pain that the economy is gonna take a hit and they To argue with mister Market Derek PERSON saying we're not gonna pivot that's not gonna And we're gonna continue to raise rates until we you know vanquish our inflation enemy here how far do you think they go? Well, I think when you look at the very short term, there's a bows And 18 CARDINAL basis points price for this year DATE Even if they do kinda revert from 75 to 50 CARDINAL which based on the inflation data last week DATE is very plausible Given what's happening potentially on the consumer side in terms of some pick up and confidence, some pick up and consumer spending. Result in the markets then starting to consider 50 CARDINAL basis points up to three CARDINAL remaining meetings this year DATE which would the results obviously on 150 CARDINAL basis points more than what's priced in now and I think The type of scenario that entermark is gonna start pricing over the short term I do actually think in fashion's gonna come down next year DATE ehm so I think the the broader picture is correct but we need to get through much more tightening and perhaps more than what's priced at the short end of the curve and that gives the dollar that further But I'm talking about. Well, on the subject of the short end, obviously, yields at the short end or significantly higher than they are, the long end right now, two CARDINAL stens inverted by 43 CARDINAL basis points. How much deeper do you think that MUFG ORG and my conclusions were We're we're highly likely to get to levels of inversion that we haven't seen since the 1980 DATE 's And based on the nine CARDINAL episodes of Tuesday DATE 's inverting going back to 19 seven
To get to levels of inversion that we haven't seen since the 1980 DATE 's. And based on the nine CARDINAL episodes of Tuesday DATE 's inverting going back to 1978 DATE there is AA clear kind of link with dollar performance in terms of the depth of the inversion so if I'm alright and we go below minus 50 CARDINAL bases points which is roughly where Two CARDINAL in 2000 DATE . I'll make it back to levels of the early 1980 DATE 's. I think again that is a catalyst for the dollar to strengthen further. So we're expecting you a dollar to pretty quickly lurch lower from here and go back below paris GPE for a longer period than what we had Flu. Yeah. Didn't feel like it lasted very long. Derek, nice to see you. Thank you very much, indeed. Derek Anthony PERSON , MUFG ORG , head of research, global markets, EMEA ORG , and international security. Thank you very much. Indeed. We're gonna continue to focus on what is happening with China GPE , Irish GPE , Pang GPE , I and G's chief economist, four CARDINAL greatest China GPE , joining us next this is Bloomberg PERSON . Hey Record setting temperatures deadly forest fires receding rivers. In this episode of Bloomberg Green PERSON , we're focusing on extreme weather. Will explore the science behind the recent heat wave. Get more extreme than it is now. I'm afraid that's inevitable. The consequences of extreme weather there is overall low awareness that heat kills Until recently there's not been as much effort to try and educate people about the dangers of heat. And we need government to And stop sending things out I'm Kaylee Lynes PERSON from Bloomberg ORG 's Global headquarters in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend DATE on Bloom TV ORG quit take ant online Access PRODUCT the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars. This is Bloomberg PERSON surveillance early edition in New York GPE and Guy Johnson PERSON in London GPE Anna Edwards PERSON is off today DATE in China GPE the Central Bank un Cut it's key interest rates the PBOC is ramping up support for an economy that has been heard by COVID lock New data show that prices for homes fell again in July DATE plus industrial output and retail sales were weaker than expected. Joining us now to discuss Cheap economist for greater China GPE . So, Iris PERSON just last week DATE , the PBOC was out talking about how it doesn't want to go through with massive stimulus given the threat Inflation and yet clearly there is a growth deterioration that they're reacting to. How much further do you think they're willing to push easing? You mean the voluntary policy? Yes. So Monitoring policy Does play a role but not the biggest role here Vertical Call.
We may see the PBO ORG series framing itself from vertical cost When they caught the MLF ORG by 10 CARDINAL basis point today DATE at the same time they were through Liquidity. That means they are actually in a very dilemma situation that weather they should ease or not so they they are killed down the interest rate but who the community appears that overall interest rate in the market in a week DATE may actually bounce back to the level that we have seen a week ago DATE And I believe that there will be more business members stimulus on infrastructure investments. Okay and to that point on the fiscal and monetary side clearly the PBOC doesn't operate independently of the government in the in the Party ORG and i'm wondering how much pressure In China GPE on the political side ahead of the party congress ORG and how you think that may factor in to some of these economic decisions? Think it's the the video see So they discussed What's measures to use either physicals or monetary or a bit of both or how to how to combine the post effects so now I see that the monetary is a Doesn't seem that much different than other central banks in terms of it's independence or lack thereof. I wonder about the COVID oh policy. How much further is Xi Jingping PERSON willing to push On that because it seems to be one of the biggest breaks on growth. Hmm true and I also worry about that but what I have seen so far in this round of COVID in Tibet GPE and also in Highland Travel ORG destinations for mainland Chinese NORP although they have clusters of COVID cases The the treatment of lockdown measures are more flexible compared to back in May DATE and March DATE to May DATE in Shanghai GPE and and even comparative Beijing Beijing PERSON was that time more flexible than than Shanghai GPE so they are now at adopting a more flexible Trying to limit the number of days in terms of quarantine and the number of days depends on the COVID spread. So, so it is not really a fixed date of quarantine. That is Actually quite helpful for economic recovery but as long as we have quarantine Here in China GPE it it will from time to time approach the economy. Well we we've seen certainly some pain in terms of unemployment I think the youngest cohort of potential workers 16 to 24 CARDINAL right now we're looking at 20% PERCENT unemployment of fifth ORDINAL of those people don't have jobs how important is that? It's a it's a very Because this group of people actually consume a large amount of their salary if they have a job And now they are And also social issues I'm not referring to social unrest but other social issues like psychological issues it will put burden on the whole economy and I believe that state of enter This has a road to play here. Is was very high stay on enterprises were high more people in terms of part time and contracts Alright ORG , start a quick question. Europe LOC looks like it is going into a recession If Europe LOC goes into a deep recession this winter DATE how quickly does that feed back into the China GPE data? It In the US GPE or recession in China GPE ?
Back into the China GPE data. If You mean recession in the US GPE or recession in China GPE ? I mean that Europe LOC 's gonna have a recession. At the moment the trade data is favoring China GPE . I imports our relatively weak but exports are relatively strong. Europe LOC is a big Part of that Weird to see European NORP demand slowing significantly how does that how does that fit into the China GPE data picture? Usually that big packs into export orders and it will be a lot earlier than trade data and industrial production data it will be 2 months earlier DATE The European NORP orders for holidays for sample Thanksgiving DATE and Christmas DATE and New Year's EVENT have been placed in summer this year DATE already placed so when we see another big orders that will be for April DATE and that will be after February DATE the Chinese Effect ORG but I am I am quite worry about that if I if I because it is not Europe LOC is also about US GPE . Alright so that way we will leave it thank you very much indeed for your analysis we greatly appreciate it RS Pang ING's PERSON chief economist for greater China GPE thank you very much now later on balance of pow we're gonna hear from China GPE said that conversation 12:30 PM TIME : New York GPE time do not miss it Has great insight into what is happening in China GPE . This is Bloomberg PERSON . So, what is the best investment advice anybody's ever given you? You don't need to have a good idea every day DATE . So, there is times to be patient and there's time to press. Think it's the most common mistake that investors make. The average investor. I think it's fomo. So buy high, sell low. You know when and the amount of damage that does the average investor Is is Let's suppose I have a extra $100 thousand Would you say that person should do with 100 1000 CARDINAL to put an index fund or something else like that? Yeah, I mean, I think for the average investor Buying an index for buying and holding and just letting it compound is really I think Someone tries to do the more damage they tend to do. Week I'm David Weston PERSON . Renewables PERSON . This is a level of uncertainty that we haven't had to deal with. Television and radio. Hey Facebook Welcome. Hey Facebook
Hey Facebook Welcome to Deborah PERSON 's Is bloomberg PERSON surveillance early edition. Surveillance ORG the original and Tom PERSON so much focus on Asia LOC on China GPE 's economic data as well as more action to come from the What's your focus today DATE ? Just to read in the current and to read the good people of Bloomberg News ORG in China GPE . This is a complex story. It's flat out complex. It's not gonna change. It's cursory and analysis isn't gonna do it. Let's go to the grocery analysis. It's a chart of real GDP and it's taken year over year DATE . So, this is the Grimmest Point ORG . Down we go to four tenths of a percent off that 10% PERCENT Dynamics in downtown we go and man what is so important about this analysis So much of it avoids the impact of COVID. I think it is grossly grossly underestimated. What COVID is done in their COVID policy is done to their economic growth. Yeah, the pur Of COVID oh definitely has some side effects you could say Tom PERSON obviously we're seeing that ripple across asset classes today DATE commodity prices are down the dollar is stronger who are you gonna be speaking about those moves with today DATE on the program we're gonna start exceptionally strong here in 7 minutes TIME with kids ukes of sock gen and move on forward Peter Hooper PERSON will join from Deutsche Bank ORG and this is Really the beginning of our Jackson Hall FAC coverage. We're taking Jackson Hall FAC is seriously as we always do but we're really gonna move on Kaylee PERSON to a careful analysis of where the major central banks are is we moved to Wyoming GPE here in about 14 days DATE . Alright looking forward to the coverage today DATE and of course from Jackson Hole GPE later on Tom Keen PERSON thank you so much now ask for what else we are watching today DATE I'm going to Watching 13 F filings for the second quarter DATE they are due today DATE to the SEC ORG basically going Hedge funds we're doing What was a really really bruising period for investors like the tiger and global for example that have had Really, really rough 2022 DATE . So, what are they buying? What positions did they exit mat? We're going to get some details and clarity on that and we'll look for all of that cover. Yeah, that'll be interesting to follow of course as it always is. I'm also looking forward to see what Donald Trump's PERSON Move is or the Department of Justice's ORG next move because they have released the warrant and now we see that certain senators are asking for the the The papers, the actual confidential material, to see what the contents of those boxes looks like, now, You know what's gonna come out of this from the Department of Justice ORG or what is Donald Trump PERSON gonna do to build on his support that you know he's clearly gotten from his base after after this search was executed by the FBI ORG . It's amazing to see how this is playing out mad. What am I watching? Well, over the last couple of years DATE , we've all been amateur verologists. Then, we all became amateur armchair generals. Now, we're all here in Europe LOC , Becoming amateur hydrologists because of these pictures here The Ryan PERSON levels are falling they're continuing to fall Signings of stabilization but yeah that's that's what we're all doing now. We're all becoming hydrologists. If it rains which is expected to this week DATE . How quickly does the water go into the ground? What does it just run off with flash floods? Alex still and I have had been having a big debate on this one. She thinks it soaks in. I'm not quite so sure. That rap things up for early edition. More surveill Had some great guests and the return of John Farrell PERSON .
Despite you know what happens we are enough and so I think going forward in that headspace I think is really important I think the pandemic really highlighted the importance of financial literacy. You know it's so important to understand okay like how do we budget how do we plan for you know unforeseen circumstances and and really make sure that we're prepared for these events in the future And Financial literacy in all forms budgeting retirement investing Etcetera ORG . To to do this. Will he change their trajectory their career path and so if we can keep doing that for the next 100 years DATE that's something that's satisfying for me BSO Now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus a claimed archival concerts visit PSO ORG . Org slash now with the music plays on BSO season sponsor Bank of America ORG Every Friday DATE with 30 minutes TIME dedicated to fixing I'm Jonathan Farrow PERSON this is Bloomberg Real Yelt The CPI and the PPI reports yes it was positive but i don't think it is any kind of game changer for the fed Plain old inflation targeting. We're not a reception now but it's coming and there's gonna be a calm before the Stay tuned for 3 hours TIME of being abused for taking vacation. Live from New York City GPE this morning TIME . Good morning TIME . Good morning TIME . For our audience worldwide. This is Bloomberg PERSON 's surveyment on TV and radio. Alongside Tom Keen PERSON and Lisa Abraham PERSON with Sam Let's PERSON save the vacation better for a moment that data out of China GPE wow downsight surprise after downside surprise Ben Laidler PERSON says it's the quietest week DATE out there. It's before Jackson Hollis PERSON , before Pick me up John this is important that economic experiment it fails We added it to again last week DATE I think what's that 4 weeks DATE of games now Of the year DATE so far. And I cover that with completeness with Kaylee Lines PERSON last week DATE John PERSON and you know we saw the app the upfield of the market but it was the way it was out there was a persistence Up to Edinburgh. I know you saw AC Milan ORG .
Field of the market but it was the way it was out there was a persistence to the big John that you could see in Naples GPE in Rome GPE up to Edinburgh. I know you saw AC Milan ORG . It was a good trip around I was watching Chelsea Spurs PERSON yesterday DATE too Tom PERSON we can pick up on that a little bit later Lisa Production PERSON . Ugly, ugly, ugly, unemployment. Yeah. For the youth in that country right now in China GPE , that is not a pretty picture. 16 to 24 year olds DATE . The unemployment rate is 19 CARDINAL . Nine%. Basically one CARDINAL in five CARDINAL young people in that country do not have a job. How much is this really affect? What the people's congress is going to do? Later this year DATE and the end of oh COVID as well because Transactions because of oh COVID patients. You're throwing Europe LOC as well. The global economy. With exception of some of the data we've had from America GPE . The global economy is in a difficult spot. Which raises a question of how much the US GPE can remain in an exceptional spot? And and this is something that you heard from a lot of the notes overnight. There was a little bit more constructive tone to some of them. Not of course we're gonna say that actually it's getting closer to their bare Being a reality of likelihood of recession in the US GPE and high likelihood in Europe LOC . Reward remains unattractive. Back. Over a JP Morgan. You can trim stocks I'm so Rest. Half CARDINAL of one% on the SMP. On your way to Milan GPE . What else you gonna do? Look at your Bloomberg PERSON . And look at below Crute PRODUCT and cop of that matter as well. We'll pick up on this a little bit later Lisa PERSON . 88 30 DATE . And how much does this really stem from exactly the story you were talking about that were than expected economic data out of China GPE having pretty big ramifications for the global appetite? At least the perceived one for commodities. 8:30 AM TIME . Here's what we're looking at This is basically the first read on the manufacturing activity after a PPI report as well as the ISM ORG data that came out of the past few weeks DATE . Actually, showing a bit of an upside surprise. Small business optimism 8:30 AM TIME : this to me I was watching over the weekend DATE yesterday DATE Saudi NORP Aramco report Blockbuster PERSON earnings. They reported a record revenue. It's just give you a perspective. Quarterly DATE net income rose 90% PERCENT to 48 CARDINAL . 4 billion CARDINAL . It is 8:30 AM TIME . They give their earnings call. How much insights they give to the demand picture? How much can we get both demand cooling Sentiment we get the August DATE NHB housing market index how much do we see that starting to take up Basically a set of straight line down as a result of the high mortgage rates and just where prices are John given that people are starting to have a little bit Scratching with what they buy. Coming up this week DATE I'd like for you to sum that up basically and then there's no news. Hey Facebook Meeting. I'm sorry. How many people John of missus Bullmarket GPE ? Start a call. When you're in triple average cash you really don't care if it's bolar bear. Chief FX ORG strategist Ignoring them or just not listening kit which one is it? I think that I think they're choosing not to listen. I'm sure markets are listening to the feb but they're not really hearing the message or You know that there's a there's a disconnect between some of the kind of High inflation anyway. I mean, way, way, way too high. And a labor market which, you know, is just incredibly tight now and and so, they really have no
Yeah, high inflation anyway. I mean, way, way, way too high. And a labor market which, you know, is just incredibly tight now and and so, they really have nowhere to go. And I I will be surprised if we don't end up pricing a four% Headphones peak into this market before we're done. Over the next few weeks DATE because Seems to me that the message from the third ORDINAL is is it cannot soften at all at this point A kid what is the message of strong Swiss NORP Frank and particularly Euro Swissy PERSON breaking through. 97 CARDINAL to. 96 CARDINAL what is a signal of that Checking out like a sore thumb on a Monday DATE morning TIME It tells you a little bit about risk conversion. I mean it tells you something about the fact that the Swiss NORP decided that they wanted to get rates backed into positive territory if they ever got a chance and that they've got some invention that they need to fight. And and if they have to Advice all attempts to to keep the currency down in the process it's fine because dollar Swiss NORP isn't the problem so so domestically you can see what they're doing but yeah I mean it's Extension of the China GPE story from this morning TIME that says US GPE economy might still be doing well so long as we don't look at the yolk curve and don't worry about the the things that don't don't gel well with US GPE economy but if we look at the rest of There's just a world of trouble out there. Kit, you're talking about how perhaps this market is not listening to the federal reserve and I wonder in this quiet DATE summer week DATE . Whether Wednesday DATE will be a pivotal day in terms of fed ORG meeting minutes TIME whether they try to signal. Hey, wake up four CARDINAL Had funds rate is actually a reality. Do you believe that this will be a catalyst for some sort of dollar strength for more market disruption? As people kind of start to hear, would they powell was saying? Ate the hard to know for sure cos I think I think what the you know I think I think the last difference you meeting was about stepping away from excessive forward guidance. So I don't know if they want to come back and stir us too hot. I think Jackson PERSON holds a different We've had from Central Banks ORG in a very complicated and chaotic global economy. It just doesn't make sense. They should take the threat, you know, the facts as they are when they get them Last year DATE . On and so forth. So so I I I would I would be a little bit depressed if I thought that they were still using FM 2 minutes to micromanage expectations. I would be more encouraged if they came out having seen the having seen the payroll data and having seen everything that we've seen since this month DATE if they came in Jackson Hall FAC and they don't say look You know, we have to get inflation back in its box and we can only do that By putting some slack into the labor market. Kitchens PERSON just keep on eating and that's been problematic. Lisa PERSON I was reading through the notes last week DATE . And pretty much every single note said the same thing. It looked like to me at least that we were equating peak inflation lisa with peak fed ORG hawkishness. I'm not sure whether you can do that. And a lot of people came out and basically said the fed ORG put is still a fed call and that the more that stocks rally the more that the Cause ORG this reverse and how much is this gonna become the reality and the talking point of the next few weeks DATE It follows. As Lisa PERSON just called it. Is this a fed call now? And does this fed ORG have to respond to this aggressive rally we've seen in this equity market. There's aggressive tightening we've seen in credit spreads. I don't think those authentic the market helps the set but the reality is that inflation that with the labor market where it is Where it is as a result of that. In inflation made drift lower over the course of the next six 9 months DATE . But they'll still have a problem because it's not outgoing. I'm back under five% easily from here. So, junior, there's a two CARDINAL stage. So, so I think I think the fed ORG 's messaging in sense of the feds problem is the fed ORG 's problem Inflation mandate Wires action, more action. The market does what it does. The concern is that as soon as the market thinks they might have done enough. That that that's when you look at it and you think no they just haven't not until the data improved just quickly as an arsenal fan did you enjoy two CARDINAL other London GPE clubs just beating each other up for 90 minutes TIME Hey, it was good entertainment. Whatever else it was. Kids are such an kid thank you TK what a game your thoughts Antonio PERSON contact baseball doesn't start like It's the second week of this season DATE .
Antonio concert PERSON . It's great. I mean, you know, it works, what's so cool about it and we were talking about baseball jam where you're going. Doesn't start like this. It's the second week of this season DATE . Thank you very much for like eight CARDINAL other stories. Joining an arsenal but you look at the collapse of menu, you look at knotting him, That's the one. Yeah. The guy went from Richmond GPE over to West Ham LOC and that's exactly what happened. You know, I look it. I mean, I'm sorry. I look at Thomas and Antonio PERSON . It's just sort of like surveys. I mean, it's great. Football Easter it's what he does when he talks about markets too he just blends the fiction with the reality Let me see. Hey Facebook Over the West Hampton. No, I forgot. That was an outrage. They deserve to lose an audience. Just so everyone's clear. Anna over at Morgan Stanley ORG . I don't keep that a secret. I think she's absolutely brilliant. Here's the line from Lisa Charlotte PERSON . Lisa PERSON , you'll love this. Let's get real hair people. Let's get real. This morning TIME . Look at the Look at where we are things aren't that bad and how much do we end up with one or the other winning out with a fed Keep going back. There we go. Lisa PERSON shouting you. Best of friends. The TK it's good to be back thanks for such a warm welcome Tom King PERSON it's a wonderful surprise Thank you very much. Take photo 2 days DATE . From New York City GPE this morning TIME . Good morning TIME . Coming up. I'm told Anne Marie Horden PERSON has a new studio down in DC GPE . I'm gonna see what that looks like. Adam PERSON tells Tom PERSON it's better than us I'm looking forward to this. Up to date with news from around the world with the first ORDINAL word news I'm Leanne Garrens PERSON in China GPE the Central Bank unexpectedly cut its key interest rates that people's bank of China's ORG ramping up support for an economy that has been hurt by COVID lockdowns and a deepening property downturn new data shows at home prices well again in July DATE meanwhile industrial Retail sales work week DATE then expected another US GPE congressional delegation. This one led by Democratic NORP Senator Ed Marquez PERSON visiting Taiwan GPE China GPE says it is fighting back by adding more military patrols around the island. The congressional trip comes a lesson Weeks DATE after the one CARDINAL by house speaking Nancy Pelosi PERSON which led to unprecedented Chinese NORP military exercises that climate crisis is compounding Europe LOC 's worst energy downturn in years DATE in Germany GPE the water level at the Keyway Point FAC on the Rhine River LOC is set to Low level this week DATE . The rain is western Europe LOC 's most important river for the transport or feel and other industrial goods. The river is now at a level where bargers find it uneconomical to transit past that way point. It is a giant shift for wilds fargo. The bank that once turned out one CARDINAL in every three CARDINAL home loans in the US GPE now plans to shri It's fast. A mortgage empire. Bloomberg PERSON is known Wells Fargo ORG is no longer committed to ranking number one CARDINAL in the business. That comes after years DATE of struggles to avoid costly probes and hits to the banks reputation. Global news 24 hours TIME a day on air and on Bloom Quick WORK_OF_ART take powered by more than 2700 CARDINAL journalists and analysis and more than 120 CARDINAL countries and Leanne Garren's PERSON this is bloomberg PERSON .
I'm going to name a couple of of your babies. I don't know if I'm asking you to choose amongst your children but you know, some of the most recognizable buildings by you, of course, the millennium DATE bridge, London City Hall GPE , the right stag, and the great court British NORP museum, what was your favorite To do. The right stage does stand out because first ORDINAL of all, it's an energy manifesto. So, so it transforms Neutral and there's a public building Symbol ORG of a nation Recycling an existing building which has I mentioned earlier is the ultimate in sustainability if you can If you can get a new life to a building it also Public space of the roof level it is the most visited parliament in the world so it puts The public Above. Demonstration of democracy in action. Do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON . The difference between political gossip And policy intelligence. Bloomberg PERSON government provides our clients with expert reporting Analysis PRODUCT . Bloomberg government Prepare ORG for an economic hurricane Thank you. Economic No one is above the law Donald Trump PERSON is not above the law He needs to comply. Add to that the former president isn't king everyone has to follow the loss emerging all my colleagues don't prejudge what we don't know about yet and I'm also urging all my colleagues to.
Understand the weight of your words and support law enforcement no matter what. In some hot water, life from New York City GPE this morning TIME . Good morning Week 100 with down about a third CARDINAL of one% ORG coming off the back of 4 weeks DATE of gains on a S and P the longest weekly winistry could a year so far and tell me taken back 50% PERCENT of the drawdown So we've taken a big bite out of that market route Full discussion full description John PERSON I'm not a big fan of Fibonacci ORG retracements just so everybody understands that but it was made a big splash of when you were I don't think you were at Melania GPE you were still in Rome GPE but it was a big deal that we went through It's quite runsome. We're gonna be picking up on that a little bit later. Also talking about what's happening in the market too. I wanna keep hitting the drum on that. Crude 88. Yes. By four CARDINAL . Three% GPE . It's not just crude Copper two ORG . So I can obviously see today DATE just on my Bloomberg PERSON screen. A lot of red sum. Getting out. Yeah off of China GPE and again West Texas LOC intermediate 88 CARDINAL . 06 CARDINAL . It's stunning down four large dollars MONEY . Right now to move forward to a Monday DATE morning TIME after the shock of Learned GPE last week DATE about this out of the other thing with former President Trump PERSON and rehart and joins us some Bloomberg PERSON in Washington GPE with the morning at briefing I like what the New York Times ORG did this morning Anne Marie PERSON they sort of move the story forward by talking to They were actually in the offices John Bolton PERSON was In Maggie Heberman's PERSON article did he do nothing about any of the shifting stories that we hear from President Trump PERSON simply on the desperation the moment for various parties what's next? Well, when you talk about the desperation, the varying parties, you see the Republicans NORP It's really cool last on how they are going to message this in a unified way you saw some temperament over the weekend DATE from some representatives saying that this needs to be justified and why they decide to go into the former president's home but many of them including representative Fitzpa Prior life was saying how we should reserve a judgement until we get more information because what you also have over the weekend DATE is the FBI ORG and the Department of Homeland Security ORG issuing a bulletin letting law enforcement individuals know and also government facilities people who work in courts etceter That there are potential threats against them because what we are seeing right now. Well, what's the win? There when there's more information for anybody on whatever side of the argument they are is when Tuesday DATE is when In 2023 DATE . Well, we don't know. I mean, Intelligence committee ORG For the information that was in these confidential documents 11 CARDINAL sets of confidential even above that clock classified documents because they want to see for the Republicans NORP whether not the Justified but the Democrats NORP it's really about the gravity of this type of situation and the questioning of other national security was in fact compromised but we don't know when there's a big question of if See the affidavit if the panel could see the likes of this kind of information but there's no timeline but To your point that you started with how much pushback is there within the Republican Party ORG to tone down the rhetoric substantially in order to avoid some of the threats unlock enforcement that we've been seeing especially because they are the party tradition of law and order. Right in the Democrats NORP are taking every moment they can to pounce on that saying I thought this was the party for law and order we are going to in fact be the ones that wanna make sure that we are protecting law enforcement officials I mean the spectrum is very wide you have representative Margaret Taylor Green PERSON that's campaigning fundraising on merchandise that says quote Much more tempered like we just heard from representative Fitzpatrick PERSON on CBS ORG 's Face The Nation WORK_OF_ART on Sunday DATE talking about that both sides.
Fitzpatrick on CBS ORG 's Face The Nation WORK_OF_ART on Sunday DATE talking about that both sides should really withhold judgement until we get more information and that is the struggle right now The Republicans NORP more than the Democrats NORP . Both sides are trying to use this ahead of the midterm elections. How is it featuring into some of the polling that we've been seeing in terms of either giving a boost to the Republicans NORP that still definitely think of former As a leader versus the Democrats NORP who are trying to use this to rally people for the law and order kind of side of things. Yeah so so We've seen is that they're using this as a messaging tool. I think until there's more information, it'll be hard to see exactly how the electric feel but by and large, they are showing up on party lines. Republicans NORP really want just For this rate they say it's unprecedented to go into a former president's home to Democrats NORP say it's unprecedented for president to take home 11 CARDINAL sets of these highly classified So the polling is likely going to the democrats NORP are going to poll Or the messaging they're going to have is definitely going to be based off off of the fact that it do not wanna see another President Trump PERSON coming to office. They're gonna be using this. Towards that, towards their case for that, but for the Republicans NORP , it's going to be really an attack on the Democrats NORP and the fact that they think that this is a politicized Garland ORG are doing. Promise the world a tour of the new studio. Gonna give us a sneak peek. Do we get a little look? Hey Washington DC GPE what did you think of that The desk tea cake full desk Her her desk is like the size of the desk at the echoes building for the Message ORG Larry Cole PRODUCT can we go down there Tom PERSON and we get some fed officials around the table oh yeah there's a little chitchat Lisa PERSON can tell him what she really thinks about the federal reserve and what we've been up to the last Yes. I'm subtle. You know and join studio and Marie PERSON hey mate thank you it looks awesome looking forward to the conference down at DC GPE as we approach the midterms and Tom PERSON development so for the weekend DATE just wow For a lot of people watching this play out. Answer. I think it was a nation. John, without question in shock last week DATE . It just real truly just simply historic and the question is the path forward here I would say this morning TIME and particularly when you look at the Washington GPE 's post this morning TIME was essentially no articles on this on the front of the fold on the internet. There's a whole mystery here developing what's next in We're gonna know Tuesday DATE or Wednesday DATE . What's next? Some of the rhetoric Sides. Bit of calm this morning TIME . Features down. Let's call it a half CARDINAL of one% on the SMP on the Nasdaq down to four tenths CARDINAL of one% ORG . A live from New York City GPE this Monday DATE morning TIME . Good morning TIME . Head on radio. See you on TV for our audience worldwide this is Bloomberg PERSON surveillance.
You're so intimately linked to the future of the UK GPE what are you seeing when you go to branches and in the country yeah we're Lot of anxiety at the moment. You know, I think that recovery from the pandemic has been and is continuing to be very strong. So, I think we're seeing the economy recover. But with rising interest rates with inflation. Those, those are things that you know, peoples and families and businesses haven't had to deal with for 10 years DATE . So, a lot of business Yesterday DATE . Haven't had to operate in that environment. So, it is causing quite a lot of Which means you know it it for us because we're up and down the country in branches and offices we can spend a lot of time talking to businesses and helping them Deal with it but it is it is very different and it's not something people have had to operate in for a long time. Allow me to bring you a snapshot of this market right now. A good morning TIME to you. We are slightly negative. We down a half CARDINAL of one% ORG on a yes and peel on the last that 100 CARDINAL with down four tenths CARDINAL of one% ORG under performance on a rust or the small caps down three quarters CARDINAL of one% ORG . Our performance of this equity market over the last 4 weeks DATE though. 4 weeks DATE of games on S and P. The longest week the winner streak of the year Far DATE and about 17% PERCENT of the lows of 2022 DATE now on the S and P 500 finally I get to say this and I think we can all say this good news is good news if you put together decent payrolls with a downsight surprise on inflation I don't think there's any other way of coloring it Lisa PERSON good news is good news and that's what this market's been responding to The least you think it's overreacting and going too far any other direction that's a separate debate. You die saying good news is good news. Very happy. I've said the news. I cannot wait to see you. It's good news. It's good news. Good news is good news for everything including bond hills going lower which sends us different signals. So, right now, there's some pretty conflic Signals going on even as good news for stocks is good news. Thanks America GPE last week DATE and both of them picked up on that inflation report. Elements of it still pretty hard. Pointies of two CARDINAL some stickiness through the rest of this year DATE and a feathers got more work to do. That's picked up Let's be clear about that. Let's take a look at two tens and 30 DATE . It's twos versus tens. The difference right now. Still negative about 40 CARDINAL basis points or so Tom PERSON we are still in premier as well with a 2 year DATE 325 CARDINAL and a 10 year DATE that's already three CARDINAL . The pathway sorry I don't know if you're aware of it John but the misera index are 210 PRODUCT spread went out almost a 50 CARDINAL basis points a solid negative 49 CARDINAL basis points to curve and version it's come To a negative 43 base response and still that would be headline banking except we had that surge out near 50 DATE .
Maybe confirm better spending with gas Is coming down. Look to the control group for maybe a snapshot of that. And we also gotta talk about this commodity market. Bring crudes down almost five%. Coppers down almost three%. At some that they try out of China GPE . It's just ugly and I'm not sure Car. It's gonna get it done for anyone. Europe LOC is John did moving from careful time. Hey Hey portal the European World Catholic to New York City GPE and Hey Facebook A long waver. We're back some. We did well. It's nice. It's a good game. Seriously we begin Coverage ORG . This is not a normal jack to all this year DATE . There's something in the air you won't know what it is until that Wednesday DATE , that Thursday DATE , when we begin to gather on that beautiful, truly extraordinary lake with a represent The Kansas City Fed ORG . Peter Hooper PERSON joins us global head of economic research. It do at your bank. Peter, I wanna vamp off neil sharing. Oh, I thought at a great noted capital Aggregate supply and aggregate demand curve and we're not gonna go into the vertical nature of supply here but he said supply supply supply Can a supply shack be cured that can come to the rescue for chairman Powell PERSON ? Tom PERSON supply shocks are always tough for the feds you know But contrary to the the view that supplies the driving factor right now our numbers are telling us it's really become demand supply was the fact Last year DATE . My colleague Justin Wyden PERSON has been doing a really nice job of sort of Getting into the date and detail and finding that as this, as this year DATE is going on, it's it's really much more a demand driven Hey Facebook can in fact handle Explain to our listeners our viewers why buoyant demand is a bad thing 82 CARDINAL . 45% PERCENT of them think economists and chairman are nuts if demand is a bad thing. Well, what's what's the bad thing is what people feel the pain and people are feeling at the grocery store, the the pump and just about anywhere you're trying to shop these days DATE . Hey When they when you do have some supply problems especially What's behind this this Fire that we're dealing with right now. And that's our view for some time has been that this is driving us into a recession eventually. The fat is gonna have to tighten enough to It. So, yes, the man is a good thing but too much demand is is really unwelcome at this point. So, Peter given that, how much conviction do you have that we have seen peak inflation that so many people said last week DATE ? You know mark at the his rallied around the sense that headline headline CPS come down court CPI Continued the plat at a high level And the underlying inflation the trim mean numbers continued up so so There is some there are some good news out there but the market they think is ignoring at least several factors that are really a problem right now that underlying Number two CARDINAL should expectations We had a little good news from the New York Head FAC recently but Michigan GPE is still is up and and the survey professional forecasters is up substantially Expectations ORG index is not News and then add to that the labor market is still on fire I mean the latest the last labor market report There's been some little good news out out there but we're not Paying attention to the the really serious news that's gonna be driving the fed ORG going forward. There are a lot of potential risks for the US GPE economy but arguably there are many
Out there but we're not paying attention to the the really serious news that's gonna be driving the fed ORG going forward. There are a lot of potential risks for the US GPE economy but arguably there are many more for the rest of the world in particular Europe LOC and there have been A number of economists that are crowded. It's basically consensus that Europe LOC will go into recession as it tries to combat inflation that's north of eight%. Do you agree that Europe LOC looks It's in a much worse position in the US GPE or do you think that it's more nuanced than that? Mike Myers PERSON team colleague Mark Waller PERSON , chief For a while Do see things Turning negative second half this year DATE . Into next year DATE . Overall, a negative for the year of the whole in 2023 DATE . And that is a combination The the energy crisis, the gas crunch hitting Germany GPE and and others pretty hard. The the tightening of financial conditions as the ECB has gotten into the act and and there they're not gonna be backing off from inflation that's actually running even higher there. Than it is in the US GPE right now. So, Europe LOC , Europe LOC is headed for downturn. We we're fully on board with that one. Peter, Uber, Ramifications ORG of another 75 CARDINAL beeps up. Let's say in September DATE , October DATE , November DATE , and whenever I I guess we approached neutrality. You don't know where it is. I don't know where it is but what is the actual ramification to Listen to the country of another big lift and rights. Well you you can be thankful that the fed ORG is on there is is on the case here in a in a way that they should be They are moving back as you say toward neutral and we think they'll be somewhere in the neighborhood around the end of the year DATE maybe first half next year DATE certainly And that's going to as we get above neutral that is gonna slow the it can begin to slow the economy enough to begin to deal with the This inflation. The cost of course is for the average US GPE household is going to be some pain on on on the job front. We are going into a recession but the the wider effect of high inflation is something we really have to deal with so yes bad brace We've been on 50 CARDINAL but certainly the risks we think still are are toward 75 DATE and that's Which is better news for the economy down the road. Peter just quickly hear Steven Major PERSON over at HSBC ORG put out a note where he said one CARDINAL reason why perhaps the terminal rate will not go as high as many people had previously expected for the federal reserve. It's because of the amount of debt currently outstanding. It is just too We've already seen it with the mortgage rates. How much do you see that as a constraining feature and how much you think that perhaps that's overplayed? I think it's overplayed I think certainly a household You know Household sector balance sheets are looking very solid at this point. Banking sector is looking pretty strong. Yes, national that is, is a problem, and that's gonna be paying as rates go up. We have to deal with the inflation problem. That's a bigger issue. I don't see the recession that's coming. We think it's gonna be By historical standards on the milder side in part because household balance is a pretty firm at this point. Peter always great to catch up with you sir. Bit of hooper there of Dodge ORG Lisa Steve Major PERSON proponent of that theory for a long long time Idea that in the bomb market of treasuries too there is this south fulfilling south limiting element to it that the high yields go the more they have to back away because ultimately the debt part that you describe which is reason why so many people have come on and said they have conviction in the longer term yields even if on the short end perhaps you could see that rise the reason for the inversion the reason why people think that we could go South of Priya Mizra's PERSON 50 CARDINAL basis point of inversion 40 CARDINAL basis points of inversion and get to 80 CARDINAL or 100 akin to 1970 DATE 's Next week DATE . Oh yeah. Yeah. Sometimes it's a snooze fest. You all in TJ. Yeah, I mean, you know, I was talking to Muhammad PERSON , Larry PERSON , Olivia GPE this weekend DATE , and you know, they're upset. They're not invited. That's my question, Tom PERSON . That's the number one CARDINAL question I have. If they are or not. I hope they are. Because otherwise
Muhammad Larry PERSON , Olivia GPE this weekend DATE , and you know, they're upset. They're not invited. But that's my question. So, that's the number one CARDINAL question I have. I don' They are or not. I hope they are. Because otherwise this is a convention for the people who were wrong. Over in Jackson Hope PERSON , Jackson GPE , Ohio GPE . I think Michael McKea PERSON is our best relationship with the good At the Kansas City Fed ORG but there's a tradition to this John which borders towards boring academic papers but then it does blow up based on events. I don't think it's rude to say a bit largely the FMC ORG has gotten a lot of inflation wrong as a whole. So, how do they The ballots. The counterbalance to their views. How much of a back and forth do you see in some of the academic research? To me, I actually will find that fascinating. The academic research in particular, where is the emphasis? The risk of Too quickly now and perpetuating economic growth or the risk of 1970 DATE 's on repeat you know that to me is gonna be a massive indication to market That quote from Tom PERSON . I will be more respectful than you. Is that in the small print for the showtime? Let's talk about forest. In West Hampton GPE . Is that gonna be your team of the year DATE ? The Detroit Tigers ORG should be relegated. I'm sorry. I know but you know come on it's exciting to see Nottingham Forest PERSON take out Nick Muhammad PERSON in West Hampton GPE I mean just down a half CARDINAL of one% ORG from New York GPE Keeping you up to date with news from around the world with the first ORDINAL word news I'm Leanne Garrens PERSON China GPE has added military patrols around Taiwan GPE after another US GPE congressional delegation visited Beijing GPE said it was fighting back against a trip a led by Democratic NORP Ed Markey PERSON the visit came less than 2 weeks DATE after the one CARDINAL by house speaking Nancy Pelosi PERSON that set off an unprecedented wave of Chinese NORP military drills around Taiwan GPE now Russia GPE 's president Vladimir Putin PERSON is offering Band relations with North Korea Putin GPE sent a message Congratulations to Kim John Uns PERSON rating for its liberation day holiday North Korea GPE has been stoppiling artillery for decades DATE and this has Some analyst speculate that it could supply weapons for Russia GPE 's war in Ukraine GPE in Russia GPE lawyers for American NORP basketball star Britney Griner PERSON have appealed for her 9 year DATE prison sentence for drug possession right now was convicted on the fourth of August DATE she was arrested last February DATE To vape a canisters containing cannabis oil were found in her luggage. Sania Ramco ORG has posted the biggest quarterly DATE profit of any listed company around Co ORG followed other big royal rivals reporting a surgeon earning due to high crude prices. Net income rose to $ 48 MONEY . 4 billion CARDINAL in the second quarter DATE almost double It was a year earlier DATE . Tributes are pouring in for Andrew Jane PERSON that can tour fetch Gerald PERSON president and former cocio of Deutsche Bank Jane's ORG death was announced on Saturday DATE after a 5 year DATE battle with cancer. He spent two decades DATE at Deutsche Bank ORG and Into a global trading powerhouse and shoe chain was 59 CARDINAL global news 24 hours TIME a day on air and on Bloomberg Quit Take PERSON powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries this is Bloomberg PERSON
We make it very transparent to the shopper before they accept an order. What's your order? It's gonna look like, how much we're gonna pay them, and how much like the consumer is paying them, and so they can decide whether they take an order, how was else it refuse it Flexibility. Transparency that they want. Are you seeing a labor shortage right now? And what are you doing to combat that? It's different in different places. All demographic Shoppers PERSON is completely different from food delivery and write sharing we're 70% PERCENT women and half CARDINAL of them are moms and that's because a lot of the job at very different and just being in the car with strangers it's about the going to the store doing a good job of customer service of really picking the right products for And we are seeing that being very appealing to women. Welcome to the world of decentralized finance. Digital currencies under some pressure. All comes down to the details here. Bitcoin is mine. BSO now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus acclaimed our carnival concerts visit PSO ORG . Org slash now where the music plays on BSO season sponsor Bank of America ORG Record setting temperatures deadly forest fires receding rivers in this episode of Bloomberg Green PERSON we're focusing on extreme weather we'll explore the science behind the recent heat wave it's going to get more extreme than it is now I'm afraid that's inevit The consequences of extreme weather there is overall low awareness that heat kills and until recently there's not been as much effort to try and educate people about the dangers of heat. Solutions for the planet to mitigate and adapt. We need government To lead on this and we need government to And stop sending Sam Headquarters PERSON in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend Bloomberg TV ORG quick take ants online They are projecting at the moment without knowing what's gonna happen globally that the price in the fourth quarter of this year DATE per gallon CARDINAL will probably drop to about $378 MONEY . So, we hope that that's true but again, it can be impacted by what's happening globally. We all hope that's true. That was Jennifer Over the weekend live from New York City GPE . Good morning to you. Here's a snapshot. The price action this Monday DATE . We are down a half CARDINAL of one% on the S and P on the third ORDINAL of one% ORG . Crew and car park commodities having a tough time of it this morning TIME . 8770 CARDINAL on WTI with down by about four CARDINAL . Seven And I can tell you the data out of China GPE just ugly, ugly, ugly, downsight surprise after downside surprise and a little rate cut in the mix as well Tom PERSON in response to some of this. It's a mix and Elizabeth PERSON economy and see if far I think she's been brilliant. John, I'm sort of surprised equities aren't down more. I mean You know I you mentioned that half a percent move on the Dow. Sure. I didn't mention that you did but I'm with you. Yeah, okay. China GPE is not a secret son. It's not a secret. Yeah. Seen a lot of it through this year DATE so far. An oil. Ellen Wall PERSON joins senior fellow at the Atlanta Council ORG and really quite good on particularly the mix.
It's not a secret. Yeah. Seen a lot of it through this year DATE so far. Unoil Ellen Wall PERSON joins senior fellow at the Atlanta Council ORG and really quite good on particularly the mix of what's going on in Saudi Arabia GPE and thank you so much for joining us today DATE . Should we get used to oil in 80 CARDINAL or 90 or are you with a school of thought that normal is much higher and we're just done borrow I'm down here. Time but I do think that four CARDINAL the the current the current picture that yes higher is definitely a new normal and when you look at the changes that are going on in the US GPE in terms of oil production and new regulations and different corporate outlooks Words increasing production there's definitely a trend towards less dynamic To the market Costs in terms of production. Slower increases in production, and so I think we we definitely could be looking at somewhat higher basis in terms of of oil, and as you've been mentioning inflation also does play a role in that. A gallon CARDINAL for gas in this country right now on average we've seen numbers decline decline decline every single day DATE going back to the middle of June DATE it's pretty impressive staff secondary Grandheim ORG over the weekend DATE to CNN ORG hoping it continues do you have that same feeling that it will continue Well I think that you also have to remember that seasonality is still a very important component in gasoline demand and gasoline prices and generally around this time we do see a slight dip in demand school is starting for large portions of the country and this summer driving season is coming to an end but Think that what will really give us a good sense of where things are headed in terms of gasoline prices and demand is as we hit the the falls we hit September DATE when refineries have to go into their maintenance season I think we'll get a good picture of weather demand is Wrong weather is going to to drop off because typically prices decline but we'll refineries feel secure enough to even go offline to do maintenance or will they feel pressure to keep churning out more and more barrels and how to put off needed maintenance and that could be a significant factor for gasoline prices for the rest of the year Ellen PERSON is COVID oh and China GPE ending that after the National People's Congress later ORG That would be a huge deal if if China GPE ended it's COVID oh policy because essentially the market is always On edge. Is China GPE gonna shut down? Is this New York City GPE gonna shut down? What's demand gonna look like out of China GPE ? And to some extent, you get AA little bit of a sense when they issue their import quotas especially for the independen Wineries but how much oil they're gonna be importing but at the you know at the stroke of a can they could basically crush domestic demand and so I think that if they do get rid of this oh COVID polic I think that that will be quite telling for the market especially for the next year DATE . Well, but how tight is production right now? How tight are supplies? And that's I guess with the the question that I have is how resilient is the market two CARDINAL -way potential shock and demand. One CARDINAL way or another, right now, we're seeing cooling demand. How low with those B if it weren't for that tightness. Yeah I don't think I think we we could definitely Lucy PERSON prices you know down in the 60s DATE if it weren't for that tightness but on the other hand part of the tightness is what is causing prices to to cool down the fact that they were so high because things were tight and then we did see some demand destruction. We are seeing continued fears of global recession. You know, even if we do get more data of Europe LOC Does pledge into recession which I think most people think is gonna happen. That doesn't necessarily mean that there's still not gonna need oil because prices electricity prices there are still so high and that could cause them to switch to to some oil. The distinction to me and say a given 100 CARDINAL page research report Is the potential demand of the Pacific Rim LOC and even the Pacific Rim LOC China GPE do you believe in that that they're gonna have the boyant boom over 1 year 2 years 3 years DATE it's gonna
The Pacific Rim LOC and even the Pacific Rim X China LOC do you believe in that that they're gonna have the buoyant boom over 1 year DATE , 2 years DATE , 3 years DATE . It's gonna pop oil to a permanent above 100 I I don't believe that that's necessarily going to be the case. I definitely think that there's room for an economic boom there. But I I wouldn't say that that's definitely gonna cause oil to to stay above 100 CARDINAL especially if you're looking at say a major decline In European NORP demand if you're looking at economic weedness in America GPE those could all be significant factors and also remember that when the middle of December DATE comes early December DATE that's These sanctions on Russian NORP oil are supposed to take effect and I think that that would be very telling for where oils going in the next year DATE and in 2023 DATE and how well these sanctions are actually enforced or adhered to. We've heard that a lot haven't we? You know that already. Looking at the data out of China GPE . It was just terrible. Industrial production. Downside surprise. Retail sales. Big down size surprise and off the back of that bramo. Commodities. Just ugly, ugly, ugly, this morning TIME . It It was employment. Of China GPE and then it was the response you talk about a rate cut 10 CARDINAL basis points which is basically window dressing indicating they're gonna have to do a lot more but a lot of analysts are saying they can't really achieve real momentum real growth with monetary policy this requires something else potentially even the end of oh codes A right cut a 10 CARDINAL basis points. It's not gonna be effective Friday DATE but it's not gonna get it done. No one thinks it is. Is it more a signal that more is to come. TK I think for you this has been front and center more than anyone you've About it. COVID oh in China GPE without understanding where that's going. Can we really put together a decent outlook? Hey, that's where I am in full disclosure folks. I'm Family members in China GPE but John PERSON I'm sorry nothing matters but their garbage COVID policy nothing matters. It's bad medicine. And others you know all the different good people we talked to her legit medical pros say this is nuts I hope that he has actually said that time Did someone else said it? Hey Facebook Hey Facebook That's a word. Yeah, it's a workshop. Go ahead. So is there more pressure when you're trying to win a basketball championship? Then when you're trying to please investors where's the greater pressure I think it's definitely trying to win a championship. It's hard because a lot of like when you invest and you know this, when you're investing You can control a lot more things It on a basketball court you can't control whether somebody's gonna make a shot you've gotta get
You can control a lot more things It on a basketball court you can't control whether somebody's gonna make a shot you've gotta get lucky and what's the greater pleasure making five CARDINAL times your money on a distressed dad investment or winning the NBA ORG championship They're both fabulous I wish I could do one CARDINAL each year that would be great but You've done a tremendous amount of work and you've made money for your clients which I think is great. Winning a championship It's a very surreal feeling because there's a whole city or state that is actually behind you You know, we had 70 1000 CARDINAL people at the finals and we had them all outside. It's 17 1000 CARDINAL in stands. And then literally like 60 1000 CARDINAL people outside. And when we won like just the joy that you had brought to the city was phenomenal. Access the financial world on demand. Here from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars In a seven 1 trillion dollars MONEY industry there's a lot of ground to cover. Prepare for an economic hurricane. Happening in ETF like no one else Bloomberg PERSON ETF IQ. Awful weather Plain PERSON old inflation targeting. It's a beautiful thing. Good morning TIME . Worldwide. Thank you Brammo PERSON . I'm not getting that from TK Mike PERSON . With some keen and Lisa Brown PERSON with some Jonathan Pharoah PERSON future's negative four tenths of the S and P. Tom Keen PERSON , the longest weekly winner streak of the year DATE so far. Yeah, there's a community week. We're gonna talk. We'll talk football here. We'll talk Jackson Hall PERSON , big theme coming up for us, but You're right. It is all about the equity market. Huge differences of opinion and to start strong and sour with David Bianco PERSON is a good thing. Looking forward to that time. Great quote on this program last week DATE a different between a bear market rally and something more durable hindsight apparently we're seeing quite a run over low he's haven't we Agree with that and you know I'm I'm watching the mumble jumble go forward here and I think a huge amount of this John is just how unloved this market was on June 16 June 17 DATE in the easy money's been made now what? This rally is not loved. Let's be clear about that. This bounces hate it. Yes. In some places including over at Morgan Stanley ORG with Lisa Charlotte PERSON , Lisa PERSON , she said get real. Mike Wil Said PERSON the risk reward remains unattractive. So how much of this has to do with fundamentals the earnings that were not terrible they've crossed the bar for the lowest potential outcome but not phenomen But then also how much is a squarely about the federal reserve the fact that you see people piling into longer duration at treasuries you have a yield coming down this is basically easing conditions how much is this counter intuitive kind of result Antithetical to what the Fed ORG would like to see and driving a rally that is unsustainable on its own.
How much is this counterintuitive kind of result? Antithetical to what the Fed ORG would like to see and driving a rally that is unsustainable on its face because the fed ORG is gonna push back and say no just stop it. Gospel this morning TIME . This is what it says. A tug of war over financial conditions. Lisa, they go on to say right now, the fed ORG is losing and we think it will need to pull harder in the period ahead to avoid conceding more ground. When go ahead, Tom PERSON . Accommodative that's You interrupt every 5 minutes TIME there's nothing original about that. No, it's just original. I mean, I mean, I'm getting set for the, you can't go to Jackson Hall FAC , Lisa PERSON , that gloomy. Now, you can go to the It's actually pretty hazardous. Our trail is no small feet but the pro chip out there is don't pet the wild animals. Brammo's gonna be out there, John. Oh, look at the little bear. That was Is gonna show up. Hike. Is that your tea enough? I think we should. Yeah. Okay. Hey Facebook That's my Hey Facebook take a One%. We should record it. Sell pay per view. Subscription Fine ORG . Hey Facebook Six. If you're just tuning in the data out of China GPE , ugly, we're gonna be talking about that all morning. And off the back of some of that ugly day to Lisa PERSON , Crudelower, Copper Lower, WTI 8788 DATE . I love it. That's the new martial art is us trying to take a family hike with a bottle of tank. Okay, here's what we're looking at. This week DATE is gonna be an On Wednesday DATE a bit After in terms of some of the data. However, today DATE , we are looking at Empire Manufacturing ORG for the month of August DATE . It is usually the first ORDINAL initial read on what's going on in the month DATE that comes at 8:30 AM TIME : at the same time that we get Saudi Aram Earnings WORK_OF_ART call after reporting record profits just giving you a sense of how high these profits were quarterly DATE net income rose 90% PERCENT to $ 48 MONEY . 4 billion CARDINAL that is net income and it comes as they see demand continuing to increase four CARDINAL oil despite some of these goals of trying to reduce fossil fuels you are seeing prices roll over John you were talking about because of what we're seeing with China GPE but how much I keep wondering this how much is this tightness in the oil market going to continue to drive prices higher or at least keep them where they are despite a lack of demand and at 10 AM TIME look at the latest read our home builder sent to me with the August DATE NHP ORG housing market index how much does it start to stabilize as we see stabiliz Even a decline in mortgage rates but John this really goes to the heart of the issue. Mortgages are starting the rates are starting to come down. Even though the fed ORG has not backed away from it's easy. How does this make sense? Is this going to come off too soon at a time in rents are so rising at a pace that is way beyond with the vote would like to see Over financial conditions into Jackson Hull GPE next week DATE Lisa PERSON thank you do you wanna guess now let's get straight to it David Bianco CIO PERSON for the Americas LOC at DWS David your words do you think this is a bear market rally you think we're gonna retest the lows later this year DATE so David I need the Y and what should we do in between Well the the wires is fairly simple. The fed ORG 's not done doing its job. They need to hike further. The economy's gonna slow likely contract. And the US GPE economy's kind of Our view is that unless you believe the PE multiple of the SMP can be sustained at 20 CARDINAL or higher with the deceleration and earnings growth that It's not an attractive reward for the risk. We do see things that investors can pick Here and there. But our view is that it may be a soft landing for the labor market. It's likely to be shaky and shaky air for GDP. Assets are still Risk for a hard landing. What's your conviction right now, David considering that people are saying this but then they're staying in their positions. Are you starting to sell some of your Your positions or you basically just staying where you are. Will we have due date
Considering that people are saying this but then In their positions. Are you starting to sell some of your riskier positions or you basically just staying where you are? Well, we have Earlier in the year DATE , we've stuck with that position, we think of measured should keep cash at higher levels until we get past the autumn. The thing about corrections, we've already had a sharp one this They come in pairs. They come in bunches. You can go for many years without then all of a sudden you get a few. I think we get one CARDINAL more this year DATE . From there, I do think the S and P can rally to 40 14200 DATE by the end of the year DATE but I'm also still concerned that the longer term outlook for the S and P is no better than inflationary type gains for the next several Wrapped around factor analysis wrapped around the fat qualities winning right now. Can you have a bull market if only a little bit of the market goes up? Well, you need tech to rally and it sure did the past several weeks DATE which is why the SMP If I get tech to rally into 2023 CARDINAL is that a bull market? I'm not sure it is. Everybody would appreciate some breath and and some alternatives to the big cap tech names that have done so well and including in this rally I am a mac reminded investor I'd like to find macro factors and I tend to translate that into sector and industry preferences I would point out what I what I think is one of the most under her appreciated macro plays out there Utilities ORG electric utilities in a world where natural gas is the essential commodity for the 2020 DATE 's in a world of electrification of vehicles and in a world where people want inflation protection An income, the dividends. Right. And what is still a very risky macro market. Right. What's the correlation with rights there, David? Yeah, hi, correlation, particularly with real interest rates, but part of the reason why the equity market Well over the past several weeks DATE is that 10 year DATE tips yields came off their eyes and you know 30 40 CARDINAL basis points versus 7080 CARDINAL basis points earlier in the summer DATE so I'm not too worried about Interest rates affecting utilities. However, because of the sensitivity at technology I think that's still still a relationship to monitor. Particularly this morning TIME . China GPE 's week. Europe LOC 's going into recession everyone's on board with that theme. Into year end DATE . What does that mean for American NORP markets? Can we decapple from the rest of the world? Do you remember that conversation of 10 years ago DATE ? Right. Do you see that taken place? That's right. Couple word. We're not supposed to use it. But there has been very much a delinquent between the US GPE and the Chinese NORP economy and I think it's important to remember that this It is very different from the decades the past couple decades DATE past and while there are energy shortages and the risk of disruption for natural gas into Europe LOC this is not a commodity boom from the demand side we already see oil below $ 100 MONEY a barrel I pick your spots carefully Commodities and I'd pick your exposure to China GPE very carefully. We like China GPE tech. For the long term and brave at heart but China GPE 's economy is slowing down greatly. The regulatory call you're not concerned about that. Well we are. You think you put money to work in China GPE on the tech trade aren't you just a call on peace? Yeah. I would I would as I said for the long term and for those who believe in peace and rational actors amongst policy setters in China GPE and the United States GPE Here and take abroad is very sensitive to rational policies that takes a lot of faith right now that's for sure. David thank you. Better be Anko ORG there. If DWS ORG with a trade for the brave at least at the end of that conversation. I love the way that he framed that. Saying, if you believe in peace, if you believe in prosperity, if you believe in democracy, how much are you looking at faith based, investing, going forward, not just when it comes China GPE but even in terms of what the new normal will look like that it will replicate something akin to the old even in a place like the United States GPE . Bianco ORG there Tom PERSON the US GPE economy the best show I wanna plan it in rough shape at the moment. I believe you know you've heard it John it's like a broken record on a Monday DATE morning TIME from me I believe corporations will adapt it's all there is to it and frankly the nation will adapt we haven't even addressed massive legislation by the president or you love Eat it whatever the politics is in some form that's gonna be a fiscal stimulus
Massive legislation by the president will you love it or hate it whatever the politics is in some form that's gonna be a fiscal stimulus Politics ORG . My car. Coming up from our new studio in about 5 or 10 minutes DATE time. Futures right now. Negative four tenths on the SMP on the state down about a quarter CARDINAL of one% ORG . We have taken out about 50% PERCENT of the So far Lisa PERSON and we're getting a lot of push back off the back of that range. It's the only way you're gonna know it's bare market rally but it does seem highly uncomfortable given that the economic data hasn't turned around in the way at least when it comes to inflation that many would like to say. Surprised PERSON in the right direction though. Over the last couple of weeks DATE that's for sure futures down 410 CARDINAL sunny SMP off the back of this bad day out of China GPE the Nasdaq ORG softer by two CARDINAL tenths of one% the old time given me much we're unchanged at 282 58 DATE on a 10 year DATE from New York City GPE this morning TIME good morning Kevin up a little bit later Lisa Hombia's PERSON looking forward to that up next it's AMH down in Washington GPE this is Bloomberg Keeping you up to date with news from around the world with the first ORDINAL word news I'm Leanne Garrens PERSON another US GPE congressional delegation this one led by Democratic NORP senator Ed Markey PERSON is visiting Taiwan GPE China GPE says it is fighting back by adding more military patrols Comes less in 2 weeks DATE after the one CARDINAL by house speaking Nancy Pelosi PERSON which led to unprecedented Chinese NORP military exercises now in China GPE the central bank unexpectedly cut its key interest rate the people's bank of China GPE is ramping up support for an economy that has been hurt by COVID lockdowns And a deepening property downtown. New data shows at home prices fell again in July DATE . Meanwhile, industrial output and retail sales were weaker than expected. Members of Congress ORG are putting pressure on the US Government ORG to tell them what was in classified documents sees that the former President Donald Trump PERSON 's home senate intelligence committee ORG leaders have made a bipartisan request to the justice department ORG and the director of national intelligence they asked for an assessment of potential risk caused by the documents mishandling it's a giant shift for Wells Fargo ORG the bank that Turned GPE out one and every three CARDINAL home loans in the US GPE now plans to shrink its vast mortgage empire Bloomberg PERSON has learned Wells Fargo ORG is no longer committed to Struggle to avoid costly probes and hits to the banks refutation global news 24 hours TIME a day on air and all Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalists and analysts and more than 120 CARDINAL countries I'm the Is Bloomberg. 700 anniversary QUANTITY of Dante Alegary's PERSON death has triggered the work of many institutions and offered a very rich schedule of events Hey and set the crochet we present one CARDINAL of these projects that suffered a difficult start because COVID-19 has stopped the project that was shared by the opera desanticoche by the franciscan community from Florence Municipality GPE and the fun
Start because COVID-19 has stopped the project that was shared by the opera desanti coche by the franciscan community from Florence Minnesota PERSON and the fun for religious building of the internal minister. Today Feliz Limosani's PERSON project is finally enjoyable In the positive chapel the marvelous architecture by Felipa Bruno Leshi Images ORG from the divine comedy created by the French NORP illustrator Gustaf Dore PERSON through these images we can live the violent emotions of hell the weight of purgatory and the sublime joy of paradise The digital humanity is also not cuz the digital humanities are a cultural occasion to exploit. Summing up it's about merging humanistic disciplines with new technologies. I find this to be an innovating and modern tool to update culture. Cultural heritage becomes something to hand over to the new generations and not to be put aside so it's about using technology pixels and binary code with a human and humanizing content. Need to catch up. Week I'm David Weston PERSON . We think that's the next secular shift from businesses most influential and instrumental. This is the level of uncertainty that we haven't had to deal with. Television and radio. No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE . Trees. News breaks 24 hours TIME a day. Performances see new concerts that go behind the scenes plus a claimed archival concerts visit PSO ORG . Org slash now with the music plays on BSO season sponsor Bank of America Economic ORG policy symposium Only on Bloomberg GPE television and radio Mary Garland PERSON would not be the president's lawyer. He would not be the vice president's lawyer. This is about the American NORP people and doing what is right for the American NORP people, the Department of Justice ORG , when it comes to law enforcement, is independent. The White House ORG press secretary on ABS OBC over the weekend DATE from New York City GPE this morning TIME a good morning along Tom Keen PERSON and Lisa Brahm PERSON and some Jonathan Farrow PERSON features our negative four tenths of one% on SMP ORG 500 off the back of 4 weeks DATE of gains on SMP 500 we have taken out 50% PERCENT of the drawdown was 17% PERCENT of the lows it's been quite a run in both the Nasdaq and the SNP ORG over the last month or so DATE you'll done change this morning TIME at 282 70 CARDINAL So keep coming back to the commodity market for you because it's pretty brutal this morning TIME off the back of summer the week DATE of Chinese NORP data add a China GPE downside surprise downside surprise Brent down about five% WTI crew down about five% copper Down PERSON by two CARDINAL . Five% Tom WCI 87 PERSON and about 60 CARDINAL . It will cover that through the morning here and again through the week DATE . Retail sales extremely important this week DATE . It really that's the that John don't you agree that's Please stop
John PERSON don't you agree that's the headlines to tell you Reading this week DATE . Just trying to get a feel for the underlining underline story. Bloomberg PERSON Washington GPE correspondent we I mention Permanent of justice and of course the uproar We're the former president now I like to take a different tack emory what I saw on the zit guys this weekend DATE in a sleepy August DATE not How does the steamy July DATE that we had Was discussions of civil war Give me the tone that you see in all your reading and reporting of not a linkage of Biden PERSON to Lincoln ORG but justice in pending sense of where we are Where are we right now in this nation with this percolation of a potential civil war? Why think you have to go to the Friday DATE bulletin that the justice department ORG Department of Homeland Security ORG sent out to their teams to law enforcement around the country saying they are seeing a spike in violent threats mostly coming a lot of this from social media and also what you saw in Cincinnati GPE last week DATE outside in FBI ORG headquarters And this is concerns what they see in these threats are terms talking about taking a militias and a civil war so there are these concerns and you can see it just from the bulletins that the FBI ORG and Department of Holland ORG security is issuing to their departments you know the question is whether or not Continues to be a concern or does start to die down. Middle ground right now dashing to the first Tuesday of November DATE I think we can talk about the middle ground of the democratic party maybe represented by the president but what is How are Moderate PERSON GOP ORG or have they just given it up Well it's difficult right and you're talking about the primaries we have a big one tomorrow in Wyoming GPE and you have lawmaker representative Liz Chaney PERSON who the polls show is likely going to lose her seat to a very much so President Donald Trump PERSON back contender so it's really this big divide within the Party ORG you see that through the number of primaries we have seen amongst Republicans NORP and whether or not how far these candidates were willing to go in terms of showing their fieldy towards the former president to get his backing and whether or not that helped him or not and it's kind of a mixed bag. I think tomorrow will be one of those highlights where you do see a And it that strongly supports the former president the questions many of the things like the select committee that is trying to show his involvement in January 6 DATE so you have this division within the Republican Party ORG and I think what you're seeing in terms of what Is they are struggling right because as Lisa PERSON mentioned the last hour this is the party of law enforcement the party that wants to back and fund law enforcement and they are in this very tricky precarious moment cuz members of their party are talking about Attacking those individuals and defunding them. Political soup and Marie PERSON how do you place the international to my soup of politics we've got representatives from the United States GPE heading back over to Taiwan GPE not unheard of thing and Nancy Pelosi PERSON was the highest ranking but why are we having this in the mix right now with China GPE now saying that they're going to extend some other military Analyst PERSON will say that when you see lawmakers from the United States GPE go over to Taiwan GPE it's a lot of virtue signaling back home right this place very well into the politics especially ahead of elections to talking tough on China GPE For the past year DATE there's been about 33 CARDINAL lawmakers or under the Biden PERSON administration has been about 33 CARDINAL lawmakers that went over to Taiwan GPE you don't always hear about it it doesn't always get the kind of coverage that we saw from speaker Pelosi GPE because obviously of her ranking being third ORDINAL to the presidency and this trip is very much so getting highlighted in the Chinese NORP press because As well as live military drills which likely included firing ballistic missiles over the island even into Japan GPE 's economic exclusions zone and what you are seeing today DATE is the Chinese NORP Talking about the PSP ORG .
Likely included firing ballistic missiles over the island even into Japan GPE 's economic exclusion zone and what you are seeing today DATE is the Chinese NORP military talking about the PLA ORG the people's liberation army preparing still for war and they are now going to have more patrols given that you do have this delegation there. Think about all of this. Well, it's mixed, right? So, Taiwan GPE has two CARDINAL , two CARDINAL of their parties right now, the one that is in power. Definitely Lean's towards the rhetoric of independence, but there's a number of people in Taiwan GPE that really wanna keep the status quo. They understand that they are tiny compared to China GPE , also China GPE , is there biggest trading Partner They don't wanna see a war and what they would like to see is the status quo and our reporter Samson Ellis PERSON I think put it very well a few weeks ago DATE when speaker closes on that trip and he said the repercussions will not come to United States GPE repercussions will be faced by the people Taiwan GPE . Amberie thank you Elisa PERSON to Anna's point just to build on that this is not new but what is new is how China GPE 's responding to it and they're responding to these visits with much more aggression and it's surprising Not hearing more rhetoric about how concerning that is. It doesn't seem like there is a feeling that there's going to be war. How many articles have you read? How many analysts coming out and saying, should it doesn't wanna work? Neither just the US GPE . Both of them are diffus Taiwan GPE and the escalating military drills to complex moment Tom PERSON if you Read on this the former Australian NORP Prime Minister Kevin Rudd PERSON . Yes. Over the weekend DATE in the Wall St Journal ORG . Pretty tiny piece. Exceeds his grasp. More than vocal about this and it goes Australia GPE has a unique position I end this you know I was talking to Qantas ORG about this and of course Person you know a little different but he has a real international weight here in his comments are I'm just to be clear. You won't speak into the airline. You were speaking to your Australian NORP producer. No, but no, we're all quite as is, you know, you know, as parents named him. No, I was being fearline. Chiropractic. I don't know which it is. Honestly, if you don't follow Confused PERSON . Pretty quickly. Yeah. Okay. Can we talk about manually? Yeah we'll do that. Future's down. Half CARDINAL Florida GPE . Blown back.
So, what is the best investment advice anybody's ever given you? You don't need to have a good idea every day DATE . So, there is times to be patient and there's time to press. Think it's the most common mistake that investors make the average investor. I think it's fomo. So, buy, hi, sell low. You know when and the amount of damage that does the average investor Is is Much suppose I have a extra $100 thousand what would you say that person should do with 100 1000 CARDINAL to put an index fund or something else like that Yeah I mean I think for the average investor Buying an index but buying and holding and just letting it compound is really All advice. I think Someone tries to do the more damage they tend to do. Gossip Policy PERSON intelligence. Bloomberg PERSON government provides our clients with expert reporting analysis. Bloomberg PERSON government Confronting a wall of doubt. Lisa shouted American Stanley ORG saying get real. Mike Wilson PERSON of Morgan Stammy GPE saying the risk reward is unattractive. Futures this morning TIME down about a half CARDINAL of one% ORG on the Eastern P after 4 weeks DATE of gains. 100 CARDINAL . The longest weekly winner streak of the year DATE so far and taking out about 50% PERCENT of the draw down in 2022 DATE . I believe we're close to 17% PERCENT or so off the lows. The message from the fed the message from city from Bank of America ORG we have more work to do at the federal reserve and Look like this. Inversion that you'll curve Let's look at the drop right now John PERSON you've got your math really well done SPX ORG up a solid 17 CARDINAL at percent down doesn't do quite as well in the nastic john from the bottom Up 22% PERCENT . You go to the media gloom song but it's not just the media. It's the whole of the south side. As well with the exception of maybe Mister Klanovich PERSON over at JP Morgan ORG . And I'd also say Chris Harvey PERSON of Wells Fargo ORG Sunday DATE . It's been very good. Just Said PERSON that weakness you're looking for in this economy push it out to early 2023 DATE . Wanna come until the first half of 23 DATE . This is a market for the Bears the skeptics and the nervous and you know you want to work if I could Last couple of weeks saying that maybe this can generate some crowd again and pretty sure over the last couple of weeks DATE that more and more people are getting that itch getting that itch what do they say price shape sentiment sentiment doesn't shape price and all that good stuff very good that's the bond market not We look a little something like this. We are down. Downside surprise in China GPE after downside surprise in China GPE . Ugly, ugly data, and before we got that date to the came out with the smallest of the rate cards. Crude is lower, 93 CARDINAL on Brent, Copper is lower but down two CARDINAL . Three% GPE . That is one to watch. That's what we do hit some fish An international feel Yeah, I know. Yes. Alright. Some single names based out of London GPE . Operating elsewhere. His grandma. Oh operating on the other side of the room. I've taken a look just spinning off the commodity complex. This is the story of the day DATE both with respect to the macro as well as the micro and the John was talking about that rally that would come back particularly in the broad indexes. Look under the hood and there's Whole lot of pain in the commodity section.
John PERSON was talking about that rally that would come back particularly in the broad indexes look under the hood and there's been a whole All been down more than 20% PERCENT 27% PERCENT before today DATE even since June 7 DATE . This has been driving a lot of this feeling that perhaps we've hit peak inflation. This has been driving the fact that perhaps you have if you have a fed put or a Rather you have a On the market giving it wind. You can see this also in the oil complex seeing all of the major oil companies also declining in the face of a lower oil prices today DATE . You could see for example, if you if you get a sense today DATE of those movers, X on down two CARDINAL . Six% Chevrolet ORG , two CARDINAL . Four% Devon energy down at three CARDINAL . Six% GPE . All of these Down PERSON in between eight to 14% DATE since that time so giving you a sense Tom PERSON of just how much you've seen these come off a reverse of the trade that we saw for the first half of the year how much is this driving sentiment how much is something that we have not been able to predict and there's normally been a pain trade to try to gauge out the price of oil to gauge out where Are going to go how much is that was dictating the more benign mood in a risk assets Five% move down an oil 87 56 on American West Texas LOC at intermediate they've not got enough credit credit swees at the bottom I meant What's forcefully optimistic. They've done a great job in equities and across a fixed income In getting the post pandemic rally right leaving their foreign exchange charge global head of FX ORG strategy at courtesy Shahab John PERSON joins us right now and part of that optimism is strong dollar you don't mince any words about Dollar gloom is not an order. No for us the framework remains the same as it has been really for the past year DATE ever since the fed ORG made a hookish NORP tilt in June of last year DATE so what we're seeing at the moment is still clear US GPE outperformance when it comes to the the likelihood of avoiding recession there's a lot of talk Us GPE recession risk but the truth is the problems seem much more gloomy in Europe LOC and look at the Chinese NORP numbers that we just had as well. How many other central banks do you know that are that are cutting rates? Today DATE we had one from China GPE . Yeah it was That is your dollar resilience about capital flow into the United States GPE or is it about interest rate differentials Well it the the two CARDINAL coincide quite often so definitely there's a rate differential story that's still very dollar favorable so that does tend to bring money into the US GPE but we've also liked the dollar from a terms of trade perspective as well you've seen explain that Obviously the high energy prices are coming off now but the high energy prices that we've had they've done tremendous damage to the trade balances of many countries Japan GPE , Korea GPE , the European Union ORG as well overall. And all of that has obviously caused lots of And that's something that gets overlooked sometimes when we're looking only in terms of you know recession risks and where interest rates are so there's there's two CARDINAL prongs to this and for now that's not likely to change in a positive direction If all prices keep coming off people will seeing that maybe a sign of change but if the reason they're coming off is weak demand globally that also doesn't tend to help the lives of China GPE or or For example the currency space. After the data and the policy response you feel a bit better about that trade this morning TIME . I definitely do clearly we thought there might be some kind of a short term correction in favor of the The the heat died down a little bit around the political risk over the past week DATE but clearly the the economic data there remain even weaker than we were expecting to be honest and the rate cut today DATE Surprised PERSON most economists out there so our 695 CARDINAL call for us still seems appropriate and really again as as I mentioned that was based above all on a diversion story and as I said with all the focus we've had on on the US GPE recession risks maybe the market's taken as I off The ball a little bit on what's going on the rest of the world so for us that still seems the the path of least resistance to to go higher in dollar CNH ORG
Hey the market is taking this eye off the ball a little bit on what's going on the rest of the world so for us that's still seems the the path of least resistance to to go higher in dollars in age what is the character of this downturn in China GPE and does it go beyond just this COVID oh policy we talk so much about. I think it does in the sense that clearly that's that's a big part of it but that does seem to be once you look under the hood some sense that certain sectors are in trouble for different reasons for example the property There. That's not entirely I guess about oh COVID. It there's an element of it but there's other issues to do it over leverage. And and really wants you create a problem like China GPE has By creating a weak roast dynamic in effect it's quite difficult to get out of it and you can you see that really when you look at numbers like credit growth that we had on Friday DATE that were very very weak once that credit multiplier turns off in essence it's quite difficult to reactivate it that's what Finding. We've seen that in many other economies as well. And I think that's where the Chinese NORP are right now. If you add on top of that the ever present year DATE political restory now that you know seems to be something that's not going to go away anytime soon. That also obviously cost the shadow Over the future too. So, I think there's many different issues in play here. It's not simply a oh cover story. So, amid all of this gloom, why is it that the carry trade in emerging markets has done so well. Continue to do so well. Will it continue to do that through the remainder of the year DATE ? It will become something a lot more painful. I think some areas of emerging markets already are in deep pain if you look at for example Sri Lanka GPE that's been in the headlines Any kind of a positive way. There's other countries like Pakistan GPE , Kenya GPE . So, countries Side of emerging markets. They've already been suffering. So this carry trade that you mentioned is Stephanie PERSON there for some larger economies that have benefited maybe from a terms of trade perspective The likes of Brazil GPE . We have very high interest rates. As a Central Bank ORG tries to take control over inflation. But actually their few and far between the number of markets that are really benefited from this flow. We're looking at the likes of Brazil GPE , Something NORP sent South Africa GPE but I wouldn't say the wider emerging market space has been doing particularly well nor benefiting from general sense of of Carrie Inflows. I think it's a very select group of countries that that we're talking about here. With rates should the signal be it was only 10 CARDINAL basis points than it have much here or it should the signal be this to the first play of more to come Well the Chinese NORP tend to move in small increments when it comes to interest rate moves you don't you tend not to see 50 CARDINAL pages point or 100 CARDINAL basis point moves Like we see now, for example, in Europe LOC and the US GPE . So, I think really is the direction of travel that's the more relevant factor here, particularly in a world where everybody else is busy hiking rates So I think that's for me the key takeaway from this and that keeps this divergence theme in play and that's the most relevant element as far as currency go which is why again we have the 695 CARDINAL target for a dollar QUANTITY inch He's quite a call. Right now. Oh, I was thinking about that and you know, like to get up to seven CARDINAL , seven you want is is really something. I mean, I mean, if we see that kind of week, remember that really strange out. A lot of different people, but I'm not sure John help manage that is. I I I go back and forth on that. What do you say a currency pair like that one CARDINAL moves 710 CARDINAL to one% ORG on? That's something you pay attention to. Yeah. Yeah. You you know what I mean? Sick. It's been an evolution. I mean if you get the chart up on USD ORG , CNY ORG , the fact is it's been an evolu At here is a deal with this. I go back to the front center thing. Is everybody else's dealt with COVID? Some good, some bad. We've all got our storage unit And China GPE just stands out and getting it wrong at this point. I'm with you focus on COVID oh To Shahab's point there's more than that going on there's a massive demographic issues there's real real estate problems that aren't just gonna be solved by COVID oh one off whatever it is and there's also this goal to delegate they're not as willing to throw leverage into System to try to support growth and you've seen that the 10 CARDINAL basis point move really tap it yet might signal more to come.
So there's goal to deal leverage. They're not as willing to throw leverage into the system to try to support growth. And you've seen that the 10 CARDINAL basis point move really tap it. Yeah it might signal more to come but Necessarily signal. A roaring all in that perhaps had been the past and that seven CARDINAL level. We had seen in 2019 DATE and 2020 ahead of the pandemic. On all of this it's Bill Lee PERSON the chief economist of the milk and institute and we'll catch out with him in about 50 minutes TIME we'll do that at 830 CARDINAL eastern time features down a half CARDINAL of one% on S ORG and P on the Nasdaq with down a rad about a third CARDINAL on the Nasdaq 100 he was not doing much 282 40 and off the back of that terrible day to in China GPE crew Kevin Hamard PERSON $ 87 MONEY a barrel WTI for New York GPE this is Bloomberg PERSON . Keeping you up to date with news from around the world were the first word news I'm Leanne Garrens PERSON China GPE has added military patrols around Taiwan GPE after another US GPE congressional delegation visited Beijing GPE said it was fighting back against a trip led Democratic NORP senator Ed Markey PERSON the visit comes less than 2 weeks DATE after the one CARDINAL by the house speaking Nancy Pelosi PERSON that set off an unprecedented wave of Chinese NORP military drills around Taiwan GPE now Russia GPE 's president Vladimir Putin PERSON is offering to expand relations with North Korea GPE who can send a message Congratulations to Kim John Uns PERSON regime for its liberation day holiday North Korea GPE has been stoppiling artillery for decades DATE that has led some analysts to speculate that it could supply weapons for Russia GPE 's war in Ukraine GPE minutes from the last meeting of federal reserve policy makers may reveal their inclination on the size of the Between 50 and 75 DATE basis points the latest jobs report boosted the odds of a big rate hike while the CPI report decreased them the minutes TIME are released on Wednesday DATE Saddy Ramco PERSON has posted the biggest quarterly DATE We took any listed company around Co ORG followed other big oil rivals reporting a surgeon earnings due to hide crude prices near income rose to $ 48 MONEY . 4 billion CARDINAL in the second quarter DATE almost double what it was a year earlier DATE and tributes are pouring in for and Jane PERSON . They can't or fit oh president and former cocio of Deutsche Bank Jane's ORG death was announced on Saturday DATE after a 5 year DATE battle with cancer. He's been two decades DATE at Deutsche Bank ORG and transformed it into a global trading powerhouse and shoot Jane PERSON was 50 CARDINAL Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take this is Bloomberg PERSON You're so intimately linked to the future of the UK GPE what are you seeing when you go to branches and in the country Yeah we're seeing a lot of anxiety at the moment you know I think that recovery from the pandemic has been and is continuing to be very strong so I think we're seeing the economy recover but with rising interest rates with inflation those those are things that you know peoples and families and businesses haven't had to deal with for 10 years DATE so a Business owners today DATE haven't had to operate in that environment so is causing quite a lot of Which means you know it it feels
10 years DATE so a lot of business owners today DATE haven't had to operate in that environment so cool is causing quite a lot of Which means you know for us because we're up and down the country in branches and offices we can spend a lot of time talking to businesses and helping them Deal with it but it is in it's very different and it's not something people have had to operate in for a long time. Prepare for an economic hurricane We make it very transparent to the shopper before they accept an order. What's the order? It's gonna look like how much we're gonna pay them and how much like the consumer is paying them. And so they can decide whether they take an order or is also refuse it. And that's the kind of Transparency that they want. Are you seeing a labor shortage right now? And what are you doing to combat that? It's different in different places. All demo Food delivery and write sharing we're 70% PERCENT women and half CARDINAL of them moms and that's because a lot of the job at Instacart ORG is very different and just being in a car with strangers it's about like going to the store doing a good job of customer service of really picking the right products And we are seeing that being very appealing to women. We debate how much China GPE has held down US GPE inflation over the past 20 years DATE but it's been Supply chains are disrupted by China GPE and other Around the world as we move from offshore to onshore Good luck in getting inflation down from exporting inflation to exporting a deflation or vice versa Stephen Rochester PERSON of Yale ORG on the latest We are down four tenths CARDINAL of one% ORG yields unchanged at 282 22 DATE and crude takes another leg lower guys we're down by more than Percent now. 87 32 CARDINAL Tom PERSON on WTI. 87 32 DATE in Brant Distant GPE from 100 CARDINAL distant from 1:24 CARDINAL : John 93 19 for Brent LAW a dip under 90 DATE would be a Big scene around not just screw Tom PERSON but also copper as well off the back Hey Facebook Early trading copper 350 CARDINAL Dipping under 356 John I also know gold off $ 25 MONEY back again under $ 1800 MONEY China GPE . I just think it's like, OMG ORG , there's a China GPE data. Let's do that now and then occur in Bloomberg GPE Chief Asia Economics Correspondent GPE and let me ask the pressing question. Was this a surprise It was because July DATE was meant to be the month DATE of recovery time the third quarter DATE was meant to be all about China GPE hauling itself out of the big lockdowns of the second quarter getting rose back on track and getting some momentum going We saw a weakness across the board retail sales came in much weaker than expected and best single sold for them expected in fact private sector investment well behind public spending we saw in Giving the export story with more eh we got a points on the real estate sector in terms of investment and new home prices and of course all of that together then is what Potential buying to cut it's key interest rate for the first ORDINAL time since January DATE now that move in and of itself was
Prices and of course all that together then is what forced essential bank to cut its key interest rate for the first ORDINAL time since January DATE now that move in and of itself was certainly not be a game changer for the economy the problem in China GPE is not the the price Money it's a fact that nobody wants to borrow but it does speak to the idea that the Chinese NORP economy now is slowing much faster than expected like I said at the start July DATE was meant to mark the beginning of the turnaround but today DATE 's dad has certainly corrected that narrative I read a number of analyst reports saying on one hand that they suggest just how dire things are considering what they do not want to ease policy they do not want to fan the flames of inflation even though it isn't as significant or severe over there other people It just indicates they are prepared to do so much more going forward which side do we in on? I think it has to come down the latter Lisa PERSON I mean they haven't cut his rights since January DATE despite everything that's happening in the economy and that's partly because there's no shortage of liquidity System for example eh in fact even drains some money for the money markets today and there's no shortage of of loans available for banks and companies the issue is that they don't want to borrow. It's not about The landing rate. It's an offer to them. I think what it does symbolize though is that the authorities and I've started to pull whatever labor they have available to them and on the central bank side really that's just about what they can do. The money markets about trying to bring interest rates down and maybe take some pressure off say they really say borrowers but a big Focus now is going to be on where will the policy pivot come? Will it come on COVID oh? And all the messaging on that has been no way. They want to public health over the end. They're not going to eh you turn on that at least not before the congress ORG . But so then you have to ask well what's going to happen Unfinished property projects and get some money flowing that part of the economy. These are the big questions going forward because a lot of Said PERSON today DATE that the July DATE numbers were so weak it's now changing the views for the rest of the year DATE already August DATE is looking weaker than they expected and the bad calf of this year DATE is already gonna be weaker than what they thought a few weeks ago DATE so what Social aspects of this is while we were talking about how basically one in five CARDINAL members of the Chinese NORP Society aged 16 to 24 DATE are out of work. How significant is this for the for the people's congress ORG heading into that meeting later this Obviously all important and nothing is more crucial for the Communist Party's ORG mandate than you know the the social contracts of of economic uplift and jobs being created for everybody so when you have this bracket of young people that post long term structural challenges for the economy Post ORG the risk of long term damage to their earnings and potential. It's not help but the fact there's a recommended amount of graduates coming on on the recruitment scene this year DATE . So, it certainly is a bit of a crunch. Now, China GPE is not an outlier in use on employment. Use unemployment globally because of the pandemic. It's still higher than where it was before the pandemic. That's according Certainly mission critical for the party is creating jobs. They've said so publicly timed again this year DATE and eh I wouldn't be surprised. We do see more of a focus now on job creation schemes for that 16 to 24 CARDINAL bracket in the months ahead DATE . And I wanna go back to it. Park the data from this morning TIME . Park the central bank response go back to Friday DATE Aggregate finance thing out of China GPE and is this a liquidity trap? And how on earth do they confront it? Well, that's what all the conversation is, John. I mean, it goes back to the money market. By the way, they actually took money out of the financial system today DATE . That was lost in all the news. That speaks to how the idea that there's so much money filling around in there. That that's not where the problem is. The problems are more either when I more structure linked to this COVID oh policy How did they back out of the corner down there now in of course longer term structure around the real estate story where are they on the dealeraging debate are they willing to tolerate more debt are they willing to tolerate more risky there are highways or anyone available there and then the bigger picture question about well you know what happened the whole con Transition to consumer driven economy but consumers clearly are nowhere to be seen in this recovery. So, a lot of people are saying there is now a risk of liquidity trap. We're seeing that in terms of what's happening with the lack of appetite for landing or seeing that in the credit data and that's why a lot of a comma Second half of this year DATE is going to be pretty bumpy unless there is a kind of a policy pivot a really major pivot by the authorities but so far we're not getting those
There is a kind of a policy pivot a pretty major pivot by the authorities but so far we're not getting those signals and awesome as always great coverage from you and the team on a very complex situation in the world Not just the economy there and the current there at Hong Kong GPE . It take care the credit takes her out of China GPE . That's the bright flash in light for me that's the most important sign that we've seen. Not good. Real estate up and down there has been Well over a decade DATE John PERSON I really emphasize that the the outlets of people have for investment within China GPE set around two CARDINAL things real estate and more real estate so that sort of how they got to this mass and you know we play up the abandoned cities the And skyscrapers but the fact is it's a mess. It doesn't obscure the fact that they have a medical plan if you will. A medical strategy that clearly hasn't worked. I mean, how alone are they in their COVID policy now? Even And he's trying to open up. Away from COVID oh though Tom PERSON we call this the prospect of a banner cheap recession. Wouldn't we Hey Their answer is they're gonna grow their way out of it if they COVID. I mean, they're playbook is always been employed people through exports. That's 30 years DATE of discussion. Lexi, you'll take on this? Well, they wanted to transform away from that. They wanted to create a marketing economy and this has Problem is how do you do that when you've curtailed that growth and you're not necessarily seeing a smooth run there especially with the overhang of the mortgage Under Commodities difficult today DATE we're down by almost five% on WTI 87 CARDINAL handle Coming up shortly Lisa Hornby PERSON of Schroeders looking forward to that conversation on rates on credit on bonds just around the corner with equities down to six tenths CARDINAL of one% ORG on the S and P on the Nasdaq without four tenths of one% ORG from New York GPE this Monday morning good morning DATE to you I think we need to think differently about, you know, being enough. I think, you know, in in number of different respects, I think, you know, we're trying to either prove ourselves or do too much. I think we have to realize that, you know, as black people despite what society says about us, despite, you know, what happens. We are enough I think the pandemic really highlighted the importance of financial literacy. And and that you know it's so important to understand okay like how do we budget? How do we plan for you know unforeseen circumstances and and it really make sure that we're prepared for these events in the future. And through Financial literacy in all forms budgeting retirement investing Etcetera ORG . To to do this. I think it's honestly impact that we've already seen. It's something that we just wanna keep going because we've seen students come in, learn everything that we teach them, and get really successful jobs on Wall St, will he change their trajectory, their career path, and so if we can keep doing that for the next 100 years DATE , that's something that's satisfying for me.
Satisfying for me. Welcome to the world of decentralized finance. We are seeing digital currencies under some pressure. All things crypto. I wanna have some of my money outside of the soccer. It all comes down to the details here. The last bitcoin is mine. Ken Griffin PERSON is moving both sit it out and send it all security is to Miami GPE this group was broken by Bloomberg PERSON 's Amanda Access PERSON the financial world on demand Hear from leading economists Policy makers And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars I think the market is reacting to the positive sign that we've probably seen the peak and inflation we finally seen inflation roll over. Markets need to be vigilant. Really just to return to kind of economic volatility that used to be the norm Thank you for being with us on radio and television on a Monday DATE we we calibrate Out of China GPE so I'm downside surprise after downsize surprise and a central bank response of right cut of what 10 CARDINAL basis points bottom line stop credit data in China GPE not great we saw that going into the weekend DATE what can they do about it and In front of a liquidity trap right now. John a call of the year with a world trade organization calling for sub three% global growth. You gotta believe in August DATE . We're We could growth but directionally things have improved in the last couple of weeks DATE and a monster upside surprise on payrolls with a downside surprise on CPI you put it together Tom PERSON we said it early this morning good news for this market Was good news. We've had quite a run. 4 weeks DATE of gains. Tom PERSON on the SMP 500 the next 32 down to 21 CARDINAL is well the makeup of the earnings reports have been quite good. John I really like what Julian Emmanuel's PERSON done over at Ever Court ISI Tickets ORG with 90% PERCENT plus of the earnings in I'm sorry it's been a surprise what a shock Tom PERSON the work from the race team the Fed ORG watchers over ever Lisa PERSON can speak to this Tom PERSON it's a tug of war right now Over the last few months DATE and it's not just equities as credit too. Credit spreads are aggressively tighter of what's going on. Bloomberg PERSON financial conditions index going from one CARDINAL standard deviation grim into a much better negative. 20 and you see that in IG ORG and in high yield as well right it's easy yes Seeing that across the board there's been an aggressive rally to John's point at how much do you say this is full hearty and that this is a bear market rally how much do you say there are fundamental fundamental reasons for this in addition to the better than expected or the weaker than expected inflation data just simply throw off that we've seen Commodities how much pressure does that take off some of the gains and really I just keep going back to that you ask Tom PERSON earlier
Yeah. Off. Yes. Why aren't stocks down more on some of this Chinese NORP data? Well, at what point is it that it reduces demand from the commodity complex which alleviates some of the tension for US GPE companies? Check by saying 104% PERCENT of our listeners and viewers think oil west texas $ 88 MONEY a barrel brand crude $ 93 MONEY a barrel I'm sorry exactly why is that a bad thing I'd also know this morning John Chicago Copper PERSON 56 CARDINAL down three%. On Bren PERSON and I'd say Tom PERSON it's a bad thing to be driven by wicked demand and not great a supply And I think we can make that read across today DATE of what's happened with China GPE yield to lower by a couple of basis points to 81 31 DATE at such a good thing for this White House ORG he wants to see this carry on and some gas prices keep going down you're a dollar MONEY 102 let's call it 102 CARDINAL Off the back of summer DATE there's some features Tom PERSON yes softer but with both of you it's not a major move we don't six tenths on the SMP and the nice that we done a half CARDINAL a one% Lisa Hornby PERSON joins us out of US GPE multisector fixed Buried in your note the value is there for a decade DATE in Bill PERSON 's notes and bonds the values extraordinary discuss that why is price cheap in fixed income? Well it's been fair we wrote that note about 4 or 5 weeks ago DATE Hey Over the longer term there is much better value than there has been certainly anytime in the past decade DATE and in fact if you look back even going back 20 years DATE we're at the sort of top 25 CARDINAL five%. Tyler PERSON so and so you know in our view the first ORDINAL six 7 months We now set the landscape for much better returns. We actually have income in fixed income now for the Time ORG in a while. We couldn't make that case a year ago DATE . Lisa spreads of Thailand GPE aggressively. You've seen that we've gone from close to 600 CARDINAL basis points on high yield to threatening to break 400 CARDINAL . Lisa PERSON can you help me understand just That rally for us. Where that strength does come from? Is that an up in quality trade? Is it everything? What's happened here? I think it's a I think it's a few things. I think the main one for us actually Is that people have a bit more certainty in the rates volatility And what I mean by that is 345 CARDINAL , six% GPE . Lots of expectations out there or lots of various scenarios and that led to extraordinary high rates volatility and I would of course subsequent impact on credit spreads and equity markets because if you can't price the risk-free rate, how can you Everything else. And that they think that they're getting early close to you know perhaps It's a neutral rate at you know over long term but I think people got comfort in the fact that the terminal rate is probably not five CARDINAL or six% ORG it's probably three CARDINAL or four% We have it pivoted. No pivots going on here. And basically we're expecting that day DATE . Hear that in a minutes. Is that going to reverse some of the spread tightening that we've seen? Narrative shifted a bit and that lower vow regime is positive for risk assets and especially it's more positive when sentiment had gone so far offside to me we looked at that we look at that credit Paddock GPE . Euphoria decks. It was negative five panic for for you know months almost. Now it's back actually in positive territory. So there was a massive swing in in sentiment. I think that coupled with that perception Became a bit more perhaps stubbish led to the rally that we've seen to your point Lisa PERSON and our view this is a feed I don't think that the I don't think the outcome that the market is painted which is one if you you know you look at what's priced in that yield curve is invert that's points to a recession
I don't think that the I don't think the outcome that the market is painted which is one if you you know you look at what's priced in that yield curve is invert that's points to a recession You look at what's priced into fed funds rates it's it's basically the the Fed ORG stops in February DATE or March DATE hiking and they basically do an out about face and start cutting rights in in in the summertime I think that's a that's a fairly unlikely scenario unless there's a really big downturn which there could be but then should risk us at speed price the way that they are today DATE . Lisa PERSON , are bond As well as the fed ORG all just trading and operating around an oil market that's in flux. I think oil is one CARDINAL part of it. Certainly, that's, you know, that's gonna lead to the headline, inflation, sort of girations, and you know, I'll came off and then so we saw a big a big Drop ORG down and in CPI headlines Is more important. And and that's really where the story is and to us, that's a bit more concerning. You know, yes, there was maybe a little bit of moderation, but the sticky components of core inflation are still running north of five CARDINAL Five, six% GPE . And so, to us, that's the, that's the real challenge. Yes, oil, we'll have puts and takes that will drive headline but you gotta get cornflaked down to more reasonable levels and I think that's what the fetus focused on Lisa PERSON just listened to that final comment there that just sounds like you think this debate over terminal rate is unresolved. There's too early to get ahead of this story. I think it's too early to be discounting fed cuts certainly I think it's too early to be discounting the Fed ORG has has pivoted. I think that's that's not not done yet. You know, I do think that they they probably moderate their pace in September DATE to 50 CARDINAL . Probably you know they could do a couple 50s DATE . They could do a couple of twenty CARDINAL -fives. I don't think the five CARDINAL or six% NORP story is is the one that you know people were fearful of at the very front of the eye I don't think we're getting there but I think the market is pricing at this very Specific outcome where we head into a very moderate or mild recession the fed ORG is able to stop hiking and then start cutting and that just seems un Historically, they don't cut when inflation is at elevated levels. Unless growth is really, really bad, employment is much higher, unemployment, excuse me, as much higher than where we are today DATE . So, you know, I think the market's is is getting a little too excited right now to be to be completely. You know, I've always called that Lisa Bedtime PERSON story to help equity market balls sleep well at night TIME . And that's what that is right now. Lisa Horn PERSON be there. Ostroders Lisa Robitts PERSON is just this really cute story about how this is all gonna play out. Don't you make it a great piece on this. Going into the weekend DATE . If you get inflation to moderate you allow terminal pricing to come down. Maybe that's what we've seen. But I don't think you could equate peak gear over There's a lot of things that we still need to resolve here. One is whether inflation is gonna remain really sticky into your end or not. And that's gonna reintroduce this debate about whether we have really Couple of weeks. Which we did not see decline as much and rents and some of the wage increases that we continue to see which should be all other things being equally good thing but in this case Seems to be the takeaway for many people. Tom Futures PERSON are down. Dollar stronger. What are you seeing in FX ORG ? What I'm seeing across here is a search for joy. As you mentioned, John, we had job joy We had CPI joy and I think to reaffirm what we've seen before. We gotta find the next economic joy. Maybe that awaits in the retail sales report. What I really see is a real sense of risk out there witnessed by Euroswissy PERSON Has just legged stronger 095 CARDINAL . We're not there yet. But we're getting there rapidly. I can't decide whether that's depressing or not, Tom PERSON . Let's search for joy. Rejoice. Like someone who hasn't taken enough vacation to us. We can arrange it So American NORP of you. And Lisa PERSON
We can arrange No. And Lisa Brandon Hurt PERSON on radio sitting on TV this is It's Keeping you up to date with news from around the world with the first ORDINAL word news I'm Leanne Garrens PERSON another US GPE congressional delegation this one led by Democratic Visiting Taiwan China ORG says it is fighting back by adding more military patrols around the island the congressional trip comes less in 2 weeks DATE after the one CARDINAL by house speaking Nancy Pelosi PERSON which led to unprecedented Chinese NORP military exercises now in China GPE the Unexpectedly cut its key interest rates that people's bank of China's ORG ramping up support for an economy that has been hurt by COVID lockdowns and a deepening property downturn new data shows that home prices fell again in July DATE . Meanwhile, industrial output and retail sales work we could then expected members of Congress Putting ORG pressure on the US GPE government to tell them what was in classified documents seized at the former President Donald Trump PERSON 's home senate intelligence committee ORG leaders have made a bipartisan request to the Justice Department ORG and the Of national intelligence. They asked for an assessment of potential risk caused by the documents mishandling. Iran GPE is promising to respond to a draft text to revive the 2015 DATE nuclear court by tonight TIME . Iran GPE 's foreign minister says if the US GPE shows a realistic approach there could be an agreement in the next Global markets is a giant shift for Wells Fargo ORG the bank that wants turned out one CARDINAL in every three CARDINAL home loans in the US GPE now plans to shrink its fast mortgage empire Bloomberg PERSON has learnt Wells Fargo ORG is no longer committed to ranking number one CARDINAL in the business that comes after years DATE of struggles to avoid costly probes and hits Banks reputation global ORG news 24 hours TIME a day on air and on Bloombow Quicktake GPE powered by more than 2700 CARDINAL journalists and analysis more than 120 CARDINAL countries this is Bloomberg PERSON I'm going to name a couple of of your babies. I don't know if I'm asking you to choose amongst your children but you know, some of the most recognizable buildings by you, of course, the millennium DATE bridge, London City Hall GPE , the right stag, and the great court British NORP museum, what was your favorite project The right stage does stand out because first ORDINAL of all it's an energy manifesto so Neutral and there's a public building. Symbol of a nation Eight CARDINAL . It's recycling an existing building which has Sustainability ORG if you can You can get a new life to a building. It also Public space at the roof level.
Sustainability if you can You can get a new life to a building. It also Public space of the roof level it is the most visited parliament in the world so it puts Road PERSON . The public. Above. Of course was made possible by the politicians so it's it's a demonstration of democracy in action. We think that's the next secular shift. This is a level of uncertainty that we haven't had to deal with. Television and radio. BSO Now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus acclaimed archival concerts visit PSO ORG . Org slash now with the music plays on BSO season sponsor Bank of America ORG No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE . Do you see that coming? Taiwan GPE and China GPE . To come from. The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. Inflation numbers are released. Terminal speed. When do we get back to boring inflation? Two CARDINAL to three% growth in the Chinese NORP economy. One CARDINAL Xi Jinping gets through the 20th ORDINAL party congress ORG . This October, November DATE , will there be a course correction on the economy or not? And that'll depend largely on who gets appointed as premier as headed to the economic team Bam Risco PERSON . Hey Prime minister of Australia GPE . I was listening to Bramo FAC in that promo song. Bam. Briscot. Set with so much hate within a just despise in the milk. Down a half CARDINAL or one% ORG I'll let it go and that's that 100 CARDINAL down a 34% PERCENT I won't although I've been terrible in those promos too over the last few months DATE he owed down two CARDINAL basis points 280 CARDINAL on a 10 year DATE bit defensive out there they try to China GPE ugly we've got crew down by more than five% Tom 87 on WCI John ORG , let's go into this right now. It's important. The bit defensive part, John I would suggest as in commodities. They just evaway through the morning TIME . Down about two and a half percent CARDINAL this morning TIME too. Maybe a bit idiosyncratic Say the least. This is well timed. The lane come out joins us right now. Senior fellow Brookings NORP definitive on presidential history in the Cadence GPE across decades. Elaine, I wanna go to your glorious colleague, Juan William Galston PERSON over Brookings ORG who is written a timely piece of You are expert on Exhausted America LOC whatever our politics are we ready finally for a third ORDINAL party. Dear colleague Bill PERSON post an interesting question but I think he also answered that question which is we are not ready for a third party third party DATE so don't succeed in American NORP politics because of the basic structure of American NORP politics we have winner take all systems so getting picking up a couple Here or there coming
Because of the basic structure of American NORP politics we have winner take all systems so getting picking up a couple seats here or there coming in second ORDINAL coming in third ORDINAL as you would in a parliamentary system Get you nothing And so the real effect of third ORDINAL party's historically has been simply to detract from one CARDINAL party or the other and historically third ORDINAL party movements have then been incorporated into major parties that's that's it it won't work they Password FAC . It won't work now. You are expert at the sprawl of our history. I mean, folks, this is someone who could tell you what actually happened in the 4 years DATE before Grover Cleveland's PERSON effort. I mean, to to be direct Elaine, has it ever been Divisive in the country or do we all need to read up on alien sedition in 18 oh two DATE ? Well remember we had a civil war. You don't get much more divisive than a civil okay. Yeah, I mean, so, yes, we are in a period of extraordinary divisiveness. It even has aspects of violence around it which is frightening but we have been through these periods before and survived and hopefully, we're not headed to a civil war. Elaine, you have three CARDINAL different Right now that are really dominating the headlines heading into midterm elections. You have on one hand. Gas prices going below $ four MONEY and just a general inflationary environment that does seem to be cooling just a tad. At least for certain And then you have the latest bombshells around Trump ORG and some of the papers that were confiscated from Mar a Lago LOC More significantly the midterm elections. The most important thing I think I'm watching is the abortion Intensity of the people who are appalled by the supreme court ORG abortion decision. We saw an early indication of that in Kansas GPE where on a referendum there was presidential level turnout and a 20 CARDINAL point a 20 CARDINAL point victory for the pro-choice side. I think There's a lot of pent up anger about this and I think we're gonna see it as these midterms roll out. The the economy was already baked in. In other words, if you were Republic You thought this economy was terrible. Didn't think it was Joe Biden's PERSON fault. So, that was that was already baked in and of course, the Trump ORG supporters, they love Donald Trump PERSON no matter what he does. You know, taking state secrets home and jeopardizing security, they'll make an excuse for it. So, those other Things were baked in. The new factor is the abortion decision. I think it's gonna have a lot more energy lead a lot more energy with the Democrats NORP . Then we ever thought. So get Elena PERSON that forward going to the midterm elections how do you think that's gonna shape the outcome in a way that perhaps is unexpected? I think it'll help the Democrats NORP keep the senate ORG . I think that's the big, I think that's the big take away. The combination of the abortion decision and the Republican NORP choice of some less than great candidates. Send the two CARDINAL I'm thinking of In Pennsylvania GPE and Herschel Walker PERSON in Georgia GPE . I mean, the Republican NORP had better choices than they ended up with. Thank you, Donald Trump PERSON . So I think that the combination of the energy around abortion and some poor choices probably votes well for Democrats NORP keeping the senate ORG . The I think the Democrats NORP would still lose but i don't think it's gonna be a tsunami. I don't think it's gonna be a 63 CARDINAL vote margin in the house. I think it'll be a much narrower margin than people are expecting. Thank you. Appreciate your perspective. As always the land came out there of Brookings LOC . So I'm certainly supposed to pick out one CARDINAL point right now. It would be in the commodity market not just recruit lower today DATE but just gas prices coming down the way they have I think we could say that. So without a doubt. I agree. I mean, I really, Gotta be careful here John because while you were gone and your 1 day holiday that turned into a week DATE I mean I gotta be honest John the level of gloom
I really I I gotta be careful here John because while you were gone and your 1 day holiday that turned into a week DATE I mean I gotta be honest John the level of gloom I'd never seen it was World LOC coming to an end and all that. Boom. Up we go. There was tension. Hey No. The thing of the weekend This for the American NORP audience. Here's this vulnerable firm which we know through Jim Lord O'Neill PERSON . Okay, great I've never seen the essays on manu and they're collapse like I've seen this week DATE . What's happened? The ownership of the club But I don't think you should just be on the ownership of the club those players Tom PERSON are not performing at all and they've got a really tough game next week DATE against Liverpool GPE and that could be three CARDINAL losses Three CARDINAL losses among enough seriously to the Yankees ORG being in last place. I mean that big deal. The Cowboys ORG is the same thing as a massive franchise and they just haven't been able to get any success whatsoever but the glaze That's where the focus is. They have not had the success of Man United that people wanted to see the company we can call it a company because this one has been loaded up with depth. They've spent a lot of money on players and those players haven't delivered. I'm so dumb as man you Liverpool GPE next Monday DATE is out of Darby GPE . Darby PERSON in the sense that they're not from the same city. Is that work? Okay. I don't think that worked. Anyway, futures are down. The difference between political gossip Policy intelligence. Analysis. Affairs. Edge and reaching policy makers on the hill. Bloomberg PERSON government Record setting temperatures deadly forest fires receding rivers. In this episode of Bloomberg Green PERSON , we're focusing on extreme weather. We'll explore the science behind the recent heat wave. More extreme than it is now. I pray that's inevitable. The consequences of extreme weather there is overall low awareness that heat kills and until recently there's not been as much effort to try and educate people about the dangers of heat. And solutions for the planet to mitigate and adapt. We need government to lead on this and we need government to Regulate ORG and and and stop sending things happen I'm Kaylee Weins PERSON from Bloomberg PERSON 's Global headquarters in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend DATE on Bloomberg PERSON
This week DATE 's edition of Bloomberg Green PERSON airing this weekend DATE on Bloomberg TV ORG quick take ant That is a great question. Great question. A little bit of economics are in America GPE just around the corner To get you up to speed on that. Good morning to you. Your future's unnegitive. We're down a half CARDINAL of one% ORG on a SMP on the nice that 100 CARDINAL . We down a third CARDINAL of one% ORG . And that isn't ugly ugly number. Might be key. Walk us through it. Yeah we don't normally give the empire index a lot of airtime but today DATE empire has absolutely collapsed for the month of August DATE . This is the first ORDINAL major manufacturing indicator. It comes During the month and it's down 31 CARDINAL . Three CARDINAL points down to 31 CARDINAL . Three CARDINAL I'm sorry that's a collapse of 42 CARDINAL points it fell the the numbers show that only Of responding syndicated conditions had improved during the month 44% PERCENT say things worsen new orders fell 36 CARDINAL points to 29 CARDINAL . Six CARDINAL shipments fell 49 CARDINAL points to 24 CARDINAL . One CARDINAL Even employment fell 10 CARDINAL . Six CARDINAL it's still positive at seven CARDINAL . Four CARDINAL but that's a very low number the only relatively good news price is paid falling eight CARDINAL . Eight CARDINAL points to 55 CARDINAL . Five CARDINAL but this is the second ORDINAL largest drop in the Empire Index in it's history only behind what happened right when the pandemic broke out in April of 20 DATE . So, a major fall in the numbers for the empire index kind of a tertiary ORDINAL index but it is a very interesting drop. Well, the bond market heard you Mike PERSON . You want to lower Five CARDINAL basis points on a 10 year DATE to 278 CARDINAL equities are doing okay still basically where they were but down a half CARDINAL of one% on the SMP but certainly a reaction in the bond market to some of this commodities already lower off the back of the terrible data in Mike PERSON the regional fed ORG manufacturing readings have been pretty rough for a time now for the last couple of months DATE Mike PERSON how does that stack up with the other data points did I send the PMIs wow it's interesting because the the PM Have been down we've seen that but the ISM ORG numbers have remained in positive territory and there hasn't been a great explanation for it at this point but it does suggest manufacturing Is slowing down even the ISM ORG numbers have come down some but the economy still has some residual strength we get Philly PERSON fed later in the week and I'm sure that will garner a lot of interest after this one now Mike PERSON how much is this being perhaps a little bit distorted by the inventory bill that we've heard so much about the fact that a lot of companies and manufactured factor And retailers have needed to hold on to more to avoid the kind of disruptions that we saw immediately after the pandemic started. Well, it may have something It's a little hard and necessarily put it on the auto end on the inventories in the sense that New York GPE is not a big manufacturing center for garments and things like that. So, it isn't it isn't the centerpiece of what's been Down PERSON about four CARDINAL basis points on Yeah let's call it 320 CARDINAL on a 10 year DATE we're down about five CARDINAL basis points the 278 CARDINAL equities okay we're down about a half CARDINAL of one% ORG but TK that data Weekday GPE This morning TIME . Retail data that we're gonna see later
Okay we're down about a half CARDINAL of one% ORG petite that day Hey Facebook Hey Even more important to retail data that we're gonna see later on 70% PERCENT of of the economy my keynote there John is a tertiary piece but nevertheless the magnitude that move is jaw dropping right now we're gonna rip up the script we can do this with William PERSON We're gonna talk to him about the empire statistics but said let's take advantage of his encyclopedic knowledge of the Pacific Rim LOC and the Of China. Of course Doctor Lee PERSON has all the efforts he's done at the International Monetary Fund ORG over the years DATE and city group and of course how's the shingle out? Shingle out at the milk and instit Right now. Billy PERSON , I wanna go to the party congress ORG right now. Elizabeth economy or the council form relations in her beautiful book, The World according to China GPE has the view of China GPE looking out. How does Beijing GPE and their leader in Beijing GPE how does he look within giving the grim Of the day DATE . Become the primary focus for China GPE and the source of growth going forward. Unfortunately, so much is collapse within China GPE that the domestic economy is nowhere to be found especially in the private sector And even that's collapse because the latest data show the export numbers are are are nowhere to be found so China GPE really has nothing to hang on Going into the party congress ORG She billy prosecute How does Beijing GPE actually get the message out? You know, right now, there's attention between the the the center of the central government and the municipal governments. Because right now, the only place for revival is to have municipal governments go in there and do infrastructure building and just start pumping out physical policy. Unfortunately, every municipality out there is so indebted. They can't do it. Congress ORG in October DATE is to have some prayer of saying we will have a revival at the second half of the year these numbers today DATE have put that to rest and there's no chance for that on top of that Speaker Pelosi PERSON has slapped him in the face and the loss of face going into the party congress ORG is gonna be something that's gonna be very hard for him to recover from. Bill PERSON we get to time one in the moment just on the economy. Are you describing abandoned cheap recession in China GPE ? For sure in the private sector because the only source of saving for the households has been real estate and very volatile stock market and so with the collapse of the real estate market and the the huge youth unemployment it's very hard for households to have a positive outlook for the future and start buying things like consum Is very much China GPE . Doesn't it? And it feels a case. I'm just trying to work out where that leaves the global economy off the back of these dynamics starting to bubble to the surface. Just a little bit more. The only place monitor policy can have a play here would be a regular policy to somehow ignore all of the Your bad dead That's the only place So what are we looking at Bill PERSON in terms of GDP growth for China GPE ? I hear two CARDINAL handles going into the rest of the year and so in order for for trying to get to his five and a half percent DATE target it has to have seven CARDINAL and eight% for the rest of the year DATE and right now it looks exactly going the opposite direction Has the rest of the world economy factored that in. The likelihood in your idea that you could see a two CARDINAL hand off for Chinese NORP GDP growth. I I think that notion has gotten out especially among my my friends who are a China GPE chief economist out there. They can't publish it because they take the band from China GPE . But I I think the notion is
Especially among my my friends who are a China GPE chief economist out there. They can't publish it because they'd be banned from China GPE . But I I think the notion is among the among the investors of the world. Well, this may be temporary in the China GPE would somehow recover because Always ORG has. But the structure problems I just pointed out are just so severe. I think there's gonna be a lot more work to be done for China GPE to to regain anywhere near as investor status. What about the asset Severely disappointed. Biggest second ORDINAL biggest drop in this history of this index. The second ORDINAL biggest just all in level that we have ever seen in this index is history. How much have we looking at a global recession really pitting off the slow down in China GPE ? Well manufacturing is really at the core of the globalization. That's the one CARDINAL secret that's most affected by globalization and and China GPE in particular because it's been the next system manufacturing. So we would expect any kind of slowdown in China GPE that affects the global supply chain to kill the manufacturing sector before anything else and we are seeing that in the data now. So that's not so surpris What is gonna be difficult would be how the rest of the economy global economy will adapt its global supply chains in a way that it takes China GPE out of the picture or at least become less important part of the picture. Well, you said something moments I'll paraphrase that certain people can't publish things because they'll be thrown out the country and I built there's another amount of truth in that in the mighty people and I wonder if these things start to deteriorate just a little bit more Bill PERSON where I look for reliable data on Whats actually happening in that economy Well I I hate to say this but my supply myself colleagues are are kind of constrained. I'm lucky to be at Milton PERSON where I'm not constrained to see what I think and I think it's gonna be very difficult to find The hard intelligence about China GPE outside of private sources. That's tough. Bill PERSON , thank you. Bill Lee PERSON , the milk and institute, TK, that's what we've gotta confront. These diamond dynamics, these issues that we're talking about right now, Tom PERSON , are things that we typically Which is what Bill PERSON 's talking about in the Chinese NORP economy. It's more than just an econom Analysis ORG . We're at the unique time. I I don't any ability to predict it. Other than to say, I can see the three CARDINAL of us travelling. Oh, can you To cover the party congress ORG . Are we gonna be able to talk about what's happening in that economy? Do you hear what Bill Lee PERSON just said there? But he doesn't expect to get the real insight from his south side colleagues. No, that that's been known for years DATE . Sure. Kiss that we can find some real issues in that economy I I think that Doctor Lee PERSON is speaking the reality that is unspoken by anyone on global Wall St that's experienced John Only PERSON experienced it numerous times in China GPE . There's a larger question here though. Which is our economists that are looking at the US GPE manufacturing that are used looking at the US GPE factories, the US GPE retailers, factoring in a two CARDINAL point something GDP for China GPE . How do you then factor that in and if that's the case, our oil Assets are not yet because of the slow down and demand and that I think is a bigger sort of question for markets. Where we saw the response was in the bond market yield down heading south lower negative four CARDINAL basis points on a 10 year DATE to about 278 CARDINAL let's call it 279 CARDINAL and lower at the front end it occurred as Looking forward to getting the seat back from Bramo FAC . Lisa PERSON hey Facebook I'm gonna take it away from me. Alright. Do you want it? You can have it. Cross mark's gonna join us. Management at Jill Kerry Hall of Bank of America ORG . Looking forward to doing that. Maybe just injecting a little bit of optimism after I don't know what happened last week DATE . Lisa PERSON In the conversation last week DATE . As we count you down to the open account. Keeping you up to date with news from around the world with the first ORDINAL word news I'm Leanne Garrens PERSON
Keeping you up to date with news from around the world with the first ORDINAL word news I'm Leanne Gerens PERSON China GPE has added military patrols around Taiwan GPE after another US GPE congressional delegation visited baiting said it was fighting back against the trip led by democratic Canada GPE Ed Markey the visit comes less in 2 weeks DATE after the one CARDINAL by the house speaking Nancy Pelosi PERSON that set off an unprecedented wave of Chinese NORP military drills around Taiwan GPE Russia GPE 's president Vladimir Putin PERSON is offering to expand relations with North Korea GPE food and send a message Congratulations to Kim John Uns PERSON regime for it's liberation day holiday North Korea GPE has been stopped piling artillery for decades DATE that has led some analysts to speculate that it could supply weapons for Russia GPE 's war in Ukraine GPE the UK GPE has grant The world's first ORDINAL approval for a COVID vaccine tailored towards an Madona PRODUCT 's updated booster contains a half days of its original shot and the other half CARDINAL targeting an earlier version of the Omicon GPE variant Companies has a vaccine has also been found to generate a good response against the latest subvarians. Savior Ramco has posted the biggest quarterly DATE profit of any listed company around Co ORG followed other big oil rivals reporting a surgeon earnings due to high crude prices net One 1 billion dollars MONEY in the second quarter DATE almost double what it was a year earlier DATE global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries I'm Leanne Garrens PERSON this is Bloomberg PERSON Just didn't digital currencies but not sure where to start So is there more pressure when you're trying to win a basketball championship Then when you're trying to please investors where's the greater pressure? I think it's definitely trying to win a championship. It's hard because a lot of like when you invest and you know this when you're investing You can control a lot more things It on a basketball court you can't control whether somebody's gonna make a shot you've gotta get lucky and what's the greater pleasure making five CARDINAL times your money on a distressed debt investment or winning the NBA ORG championship They're both fabulous I I wish I could do one CARDINAL each year that would be great but I think there's a great feeling in being right on an investment that You've done a tremendous amount of work and you've made money for your clients which I think is great I think winning a championship It's a very surreal feeling because there's a whole city or state that is actually behind you You know, we had 70 1000 CARDINAL people at the finals and we had them all outside. It's 17 1000 CARDINAL in stands. And then literally like 60 1000 CARDINAL people outside And when we won like just the joy that you had brought to the city was phenomenal. So, what is the best investment advice anybody's ever given you? You don't need.
So, what is the best investment advice anybody's ever given you? You don't need to have a good idea every day DATE . So, there is times to be patient and there's time to press. What do you think is the most common mistake that investors make? The average investor. I think it's fomo. So, buy high, sell low. You know when the and the amount of damage that does the average investor Is is What would you say that person should do with 100 1000 CARDINAL to put an index fund or something else like that? Yeah, I mean, I think for the average investor Buying an index but buying and holding and just letting it compound is really Of all advice. I think Tries to do the more damage they tend to do. In a seven 1 trillion dollars MONEY industry there's a lot of ground to cover. Prepare for an economic hurricane. What I think the market wants to see here is it wants to see two CARDINAL things. It it wants to see the inflation genie going back into the bottle and then that's somewhat obvious. I also think that the market wants to see some deterioration in the labor market. Back in the bottle and right now the inflation genie is back in the bottle because oil Very much oil now plunging well under $556% MONEY . West Texas LOC intermediate moments ago TIME dipping under 80 CARDINAL Especially after the Chinese NORP data that came out overnight that we could then expect it with Bill Lee PERSON of the milk and institute just coming on and saying it is very likely to see GD Road in China GPE in the two CARDINAL handle level very much opposed to what you're hearing from the main street from Main St LOC economists. A perfect time with Gina Martin Adams PERSON chief energy buy it at $ 124 MONEY a barrel analyst at Bloomberg Intelligence ORG running all of our equity coverage the last 10 days DATE I've been shocked by On a gloom. Interview the interview that I've read. Is sentiments still gloomy? Or if we had a bull market in equities where the gloom is drifted or? Yeah, it's so difficult to measure, frankly, because one of the things that I think Really surprised to the consensus The shears did get the degree to which the investor is willing to persistently invest flows into the equity market have been somewhat stable and significantly stronger than many people had Hey Facebook where We usually one of the indicators that you find is as the market is following the investors capitulating in flows are negative and that is a confirmation of very negative sentiment. We've missed that. This entire cycle. And the reason I think that they Actors frankly they've learned some lessons from the last several corrections In which the investor has largely taken money out of the equity market at exactly the wrong time struggled to get back in and tell the equity mark what it was already somewhat overvalued and really missed timed it so Some of this is a reflection of the education of the investor population. Factor analysis do we have factors out there that will allow a part of the market to be bully like even if the rest of it is very like is it factors that allow for example quality large cap to do better than Well, so far this year DATE , the factors that have done incredibly well is value. The value stocks, the the long end of value relative to the shore and the value has performed tremendously. Quality is actually been an underperforming factor because quality is closely linked to low value, Quality stocks tend to be the most expensive stocks in the market those have performed very very
Actually been an under performing factor because quality is closely linked to low value, right? Quality stocks tend to be the most expensive stocks in the market. Those have performed very, very poorly over the course of 22 CARDINAL reflecting a new inflation outlook and rising interest rates that said the factor that really screams is somewhat attractive to us and our factor work right now is still momentum Momentum ORG stock's doing very well relative to the other factor families and low volatility also doing relatively well the combination of value and quality is very messy as we contend with this environment of peaking inflation and still rising interest rates The reason why Gina Martin Adam PERSON so many people are just looking at the fed ORG and saying it all depends on what's gonna happen with interest rates and that the rally that you've seen a big tech which is really driven the gains that we have seen is off the heels of this ratchet back expectation for how high yields can go how much can we really attribute To the rally versus what Thomas PERSON talking about which is faith in the ability to continue to grow profits at a time where they've been incredibly resilient. It's entirely due to interest rates. Frankly, Lisa PERSON , because this group, even though profits are somewhat resilient, long-term. This is a group that is showing the greatest negative estimate revision in the S and P 500. So, when we look at the Communication ORG focused as opposed to the apples and Microsoft ORG of the world those stocks are producing the greatest naked investment revision in the S and P 500 at the same time they're reinflating So that would tell you that the entirety of the market sort of movement in favor of these groups specifically is related to the outlook for interest rates and some pullback and expectations or at least Pricing of expectations for the fed ORG . Now, keep in mind that when we looked at this in back in June DATE , these stocks were inordinately cheap, To their long-term average. They're now somewhat expensive trading at about a 20 CARDINAL handle on forward earnings, relative to their pre-pandemic five-year DATE average at 17 and a half DATE . So, this is a group that is now Expensive. Fed ORG does move to the degree that the market is anticipating we would expect this group to try closer to 15 CARDINAL maybe 16 CARDINAL times forward earnings on a on a Longer term basis. That's a far cry from where we are today DATE . So, I think this is still a group that exhibits some degree of risk and probably create some downside pressure in the short run as we rotate to more sustainable What's the next pivot point then for equity traders that are looking to the fed? Look I think the next pivot point is obviously the next thread meeting That said most people are are largely anticipating somewhere between 50 and 75 MONEY basis points over the next meeting. The really big question marks come into play into the end of this year DATE . Because there are a lot of folks Midterm election. There are a lot of folks that are counting on economic data sort of deteriorating significantly following Labor Day DATE and that creates something of a pause at the fed ORG by early 2023 DATE . Will that The fed ORG themselves also appears to be getting a little bit frustrated with the degree to which the market has traded Last fed ORG meeting and is being very vocal and suggesting we are not going to drop the ball on this we have very strong conviction with respect to policy and and really battling the inflation genie if you will So the feathers guiding us to expect them themselves to remain very vigilant and very happy. Nobody's watching. Everybody got wrong the resilience of revenue and earning growth Qtwo yep why is Qthree any The biggest difference going into Q three CARDINAL is that much of that revenue and earnings growth resilience was due to the commodity space Since we've gone through the course of second quarter DATE earnings we've seen commodity prices pull back tremendously yes so there's been a lot of rotation out of the commodity trade and price capitulation and commodities May DATE risk the outlook in the short run for some of those more resilient segments of the market and then we've got a lot of inflation volatility to contend with still Getting ORG started on Monday DATE here. Thank you. So much Lisa PERSON , down $ five MONEY on an oil barrel, what are we gonna get? We're gonna get under $ three MONEY on a gallon CARDINAL of gas or halfway there. Well, we're hearing from this administration that they expect to all prices You decline with gasoline following how much does that really hinge on what we saw overnight TIME from China GPE . Negative 221 CARDINAL .
Gasoline following how much does that really hinge on what we saw overnight TIME from China GPE . Negative 221 in the mix 21 CARDINAL . One CARDINAL at four CARDINAL what an interesting Monday DATE setting us up for retail sales On Wednesday DATE , please stay with us. This is Bloomberg PERSON . Welcome back to a special western and southern open update for Bloomberg TV ORG and radio from tennis channel I'm Jimmy Maggio PERSON The stars of the ATP ORG and WTA tours head to Cincinnati GPE the final stop on the road to New York GPE . Ranking through the US GPE Open. But the 26 year old DATE could face Jensen Brooksby PERSON in the third ORDINAL round before potentially running into the red hot nick curios in the quarters DATE . Rafael Nadahl PERSON returns to the tour for the first ORDINAL time since Wimbledon EVENT and the Spaniard NORP could deny Medvin PERSON the top spot if he lifts the Blockbuster PERSON first ORDINAL round clash between Serena Williams PERSON and the reigning US GPE Open champion Emma Rodakano PERSON 23 CARDINAL time major winner recently announced that she'll retire from tennis after the Major of the year ORG at blushing meadows. You're so intimately linked to the future of the UK GPE what do you see when you go to branches and in the country Yeah we're seeing a lot of anxiety at the moment you know I think the recovery from the pandemic has been and is continuing to be very strong so I think we're seeing the economy recover but with rising interest rates with inflation those those are things You know peoples and families and businesses haven't had to deal with for 10 years DATE so a lot of business owners today DATE haven't had to operate in that environment so is causing quite a lot of Which means you know it it for us because we're up and down the country in branches and offices we can spend a lot of time talking to businesses and helping them plan and deal with it but it is in it's very different and it's not something people have had to operate in for a long time. Welcome to the world of decentralized finance. The RC digital currencies under some pressure. All comes down to the details here. Bitcoin is mine. Access the financial world on demand Hear from leading economists.
Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Lower the countdown to the open. Starts right now. Everything you need to get set for the start of US GPE training. A lot from New York GPE we begin with EPSU 50% PERCENT out of a bear Kithole PRODUCT . Is a little optimistic. But it is starting to feel Like those june lows might hold. Then stocks are railing on that. They're not really hearing the message. There's a disconnect between some of the kind of Means we get less from the fad. The market might be getting a little ahead of itself. Anyway Does not make a trend. Still quite at risk for a hard landing. This market confronting a wallet out joining us right now is cross marks Victoria Fernandez Aberdeen's PERSON James Athy PERSON Victoria let's go through the numbers 4 weeks DATE of games on the S and P about 17% PERCENT Lows on the SMP 500. We take them back 50% PERCENT of the draw down from the year DATE so far. You don't trust this rally, do you? No I really don't John I think a lot of what we've seen over the last month DATE is really been due to the fact that yields have come down And if we look over the last week DATE obviously that story of peak inflation has really been driving the market and and there's things We're seeing short coverings in the market if Equity market but look if we if we break down those CPI numbers and the PPI numbers really most Decline ORG was due to oil and gas but Cost push inflation component from the labor market and Financial conditions are actually easier now than they were At this point in time and we think we're gonna continue to have a choppy market going forward. We don't see ourselves out of the wood Hey Cody sit down this morning TIME by seven tenths CARDINAL of one% ORG I've talked about that push back Lisa Shallette PERSON over at Morgan Stanley ORG saying get real Mike Wilson PERSON saying this the equity market is front runner durable fed ORG paws the after which are lower to begin with this leaves valuation significantly disconnected from economic earnings reality risks reward remains unattractive James Ath Walk PERSON me through it. Yeah, I mean Victoria PERSON 's covered a lot of the reasons there and Mike PERSON 's Mike PERSON 's added the final, the final kinda nail in the coffin if you like. First thing I'd say is that what we're observing really, I think is just a monster Of a of a financial market structure which has been inherently broken for a long time and has Been not designed but has emerged in a state which is designed to profit from the the prior paradigm and designed to really be overtly sensitive to Fed ORG policy and therefore things like fundamentals and actually the earnings potential of individual companies get thrown out of the window and and all we do is really care about Whether the Fed ORG sounds more horky short or more davish than they did yesterday DATE . And the reality Which had emerged in during the pandemic when everybody was extrapolating on sustainable trends long into the future and deciding that regardless of the future economic reality it was okay to pay any price Equities because bonjour.
Sustainable trans long into the future and deciding that regardless of the future economic reality it was okay to pay any price for equities because bonjour to a low all of that is not particularly useful analysis and I fear that when the economy has a cold shower the ectic market is gonna experience one also The bear market party with you two this morning TIME . I'll just take the other side just for a moment. Payroll so great. Massive upside surprise. Downside surprise on inflation. Those two CARDINAL things together. Good news is good news. Victoria I sent your push back around this idea that there are Market participants saying peak inflation that means peak fed hawkishness is that the wrong way looking at it? Yeah, I think it's the wrong way for sure. I mean, we talk about the feds looking at that month over month DATE . The number. So, we have Component ORG in the oil and the gas component but remember And gas prices were We said oh my goodness that's gonna hurt the consumer demand is gonna go down so if The story then as Prices come down that should actually At this point in time. So, I Over the last week DATE what's Between a bear market rally and something more cheerable and someone just turned around and said hindsight we need to do better than that been Riley ORG 's aunt Hogan ORG said this a perfect 50% PERCENT retracement from the peak to trough in this cycle that tends to deliberate the difference between a bear market rally and the start of a bull run and that's gonna get a lot more believers into this market take a Hey 200 next stop maybe about Continue to talk about the fundamentals as we always do. Let's talk about the fundamentals. Five CARDINAL out of the 11 CARDINAL sectors are what is leading this rally. 79% PERCENT of the gains are coming from these sectors alone We've talked about technology being the big winner of more than 20% PERCENT off of those due lows discretionaries well so that feels rest gone financial is interesting given we've talked Continuing to be inverted and increasing sometimes in magnitude and duration but if there is Of another bullish theme it is a vex and we've talked a lot about is this still the right indicator to be looking at It is below 20 CARDINAL . It was until today DATE . We take up a little bit too about a 21 CARDINAL but still really When you think about the bullishness and maybe the lack of fear that this index Awesome ORG . We are about 25 minutes TIME away. Future's a negative. Not everyone is bearish and pushing back against this rally that we've seen. I talked about BNP ORG paragraph a couple of weeks ago DATE . I talked about the risk of crowding it as this market climbs higher. Arguably to some degree we've seen some of that. Chris Harvey PERSON of Wells Fargo ORG on this program 2 weeks ago DATE . He said the weakness you're looking for US GPE economy isn't gonna come soon. You've gotta wait until the first half of 2023 DATE . James Athy PERSON allow me to pick up on that point from Chris Harvey PERSON over at Wells Fargo ORG . Do you think he's gonna be wrong? He's saying you're too early. The witness in this economy and earnings is not gonna show up until the first half of 23 DATE . Do you disagree? Well, yeah, I mean, you have to define that, you know, I think a lot of people see this as binary recession, yes, or no, and and you know, if we're not in recession react as if we're in a booming economy, I'm I'm gonna be a little bit more subtle than that and suggest we're on a path and the path is down and the path has been down for quite some time. It's been down from above trend. Unsustainable position given the you know unsustainable monitoring physical support which god is there and we've seen some of that froth come out but what we're seeing now is the policies is continuing to tighten with seeing certain sectors of the economy really struggling with seeing consumer incomes really hurt and in an economy which is 80% PERCENT consumption that's a pretty big headwind this is going to be a It's not a binary.
Using certain sectors of the economy really struggling with seeing consumer incomes really hurt and then an economy which is 80% PERCENT consumption that's a pretty big headwind this is going to be a process it's not a binary event but if you look at the trend in key you know data with the exception of payrolls which really is last man standing and it's a lagging indicator everything is telling you that the path is Earnings will remain under pressure because it's gonna be very difficult to protect margins when the starting point was elevated margins and of course when is very much a cost input cost shock which is which is hitting the economy today so yes I think the economy will be weaker in Q 123 than it is now but I don't think that means Gonna be strong between now and then. Their policy is tighter but financial conditions are easier what wins out here? Yeah I mean I'm I'm a seller of the idea that financial conditions really are the metric that we should be using part of the problem is that there's a circularity there and that's exactly where the fed ORG has found itself trapped between their desire to communicate policy changes in advance and they're inability to forecast really the key economic metrics and the fact that markets are desperately Are hoping to be risk on forward looking you just get trapped there I think what matters realistically is that we have a heck of a lot of debt we have a huge huge huge cohort within most western populations who had very very low disposable income to begin with and are seeing that being massively eroded by this non-discretionary These are the significant headlines that you have anyway and then when you put fiscal policy from as loose as it's ever been to tightening at the margin and indeed monetary policy moving quite rapidly through the gears in a way that we haven't seen for 40 years DATE there's some pretty significant headwinds out there some pretty significant moves happening Morning TIME . We've got the S and P down six tenths DATE . No real drama considering some of the moves we've seen this year DATE . But look at commodities down about five% of WTI to 87 CARDINAL on Brent to 93 CARDINAL on Copper down about two CARDINAL . Six% GPE . The data out of China GPE are touched on Seems to be the narrative is switching from data point to data point. It was empire manufacturing this morning TIME . Sam Roe PERSON and on Twitter PERSON this morning said you don't often see the word plummeted using official reports and that's the words the New York Fed ORG uses The headline general business conditioned index plummet Two CARDINAL points. Now, Victoria GPE , can I ask you what date were you focused on? Right now, because 1 minute TIME the ISM ORG looks decent, the next minute TIME , the regional fed in the seas, the index is look terrible. That's exactly right which is why we think there's going to be so much volatility for the rest of the year DATE . I know James PERSON was saying he doesn't expect the market Exactly that reason. So, I mean, what do we look at And try to weigh it against each other. So, obviously, labor market is extremely important. Manufacturing is important. The consumer and the Tremendously PERSON yet you know you look Earnings going into the third ORDINAL and the fourth quarter DATE and we're seeing earning estimates come down but yet Technical Trading above their 20 day DATE moving average those number But the same time you've got weekly DATE jobless claims moving higher you have trouble going on in Europe LOC you have the Take a broader view Victoria James PERSON sticking with us features down six tenths CARDINAL of one% ORG let's get you some movers going into the open and bound his Abby Sticking PERSON with that disappointing China GPE data we hear in the US GPE of course woke up to the surprise rick hike cut excuse me hike cut excuse me by the PBOC of course going against the other central bank And this is weighing in a big time on the quality complexes you were talking about and also on not surprisingly energy and natural resource movers here in the US GPE ex on mobile down three CARDINAL . Seven% in line Or wait on by oil haliburton down four% freeport macaron one CARDINAL of the big copper miners down four CARDINAL . Five% and then of course Riotinto ORG which is also Minor down three CARDINAL . Eight% ORG if we were to take a look at some of those China GPE
Which is also another minor down three CARDINAL . Eight% ORG if we were to take a look at some of those China GPE tech ADRs John PERSON not surprisingly we would see a big declines there too that's weighing on the tech sector here in the US GPE over Are not pretty at all. Abby PERSON , thank you. Coming up on this program, some ugly data out of China GPE . Picture exposure to China GPE very carefully we like China Tech ORG for the long term and brave at heart but China GPE 's economy is slowing down greatly. Alexa on China GPE at home and abroad on the mainland and in Taiwan GPE . We'll catch up with Mike McKee PERSON and AMH on the other side. This is Bloomberg PERSON Most of us don't spend much time thinking about the grid the dizzily huge system of cables transformers and outlets that reliably powers our lives it's an easily ignored change resistant part of the modern world and that's the Like it. As we move towards this planet melting ways of producing electricity the grid is going to have to evolve too. So many countries and governments announcing high targets when it comes to decarbonization and being climate neutral. But this is just one side of the coin. It's not enough to simply generate green energy. We also need to make sure that this transmitted and distributed to the unconsumers. The grid of today DATE just isn't equipped for renewables So a new kind of grid is starting to take shape. The super grid Is it 5 PM TIME in new york GPE and 2 PM TIME in san francisco GPE ? Cycles It's a small gesture but at least it shows that they care. Of what's to come we've had a huge amount of credit and fiscal impulse but is that enough that is really the question China GPE facing challenges at home and abroad. The latest economic data revealing a deepening slowdown. This is the country ramps up. It's military action near Taiwan GPE . Following another US GPE visit. The Chinese NORP foreign ministry Principal they are overestimated themselves they are doomed to fail team coverage starts right now with Bloomberg Samborie PERSON down at DC GPE my Mackey here in New York GPE AMH just another visit and more tension More tension and really because this highlights the fact that this visit led by Senator Ed Marqui PERSON of Massachusetts GPE is just less than 2 weeks since Pelosi wet now it's not uncommon for members of congress ORG to go to Taiwan GPE to have these congressional visits but it is unlikely that you would see the speaker of the house Is why that has drawn a lot of condemnation from China GPE and we saw these live fire drills and also sending off ballistic missiles which likely went over the island to land in Japan GPE economic
From China GPE and we saw these live fire drills and also sending off ballistic missiles which likely went over the island to land in Japan GPE 's economic exclusion zone and the fact that Trip is so close together it is just creating more tension between these two CARDINAL countries and what you see now is China GPE 's defense military coming out with a statement that the PLA ORG the people's liberation army is preparing War and there are continuing these live drills around the street. It makes we've talked about that the reaction to it is and there are many people out there join a line between the weakness in the domestic economy and this president the leader of the Chinese NORP Commodistant Xi PERSON doubling down attention abroad might be key that data add a China GPE overnight not great and I would The data going into the weekend DATE wasn't terrific either Well, nobody was expecting it to be in the sense that you shut down your economy and you're going to lose some economic activity but go back to the board that shows what happened. It's way below what even was expected. Everybody had marked down their growth figure And that they still came in worse than thought and here's the worst part for President Xi PERSON youth unemployment 18 to 25 years old DATE is skyrocketing there and that is not You wanna have in a country that prizes social calm The the idea of President Xi PERSON trying to get another term under these circumstances would ordinate most countries I would say would be difficult but right now it is something that he has to deal The Bank of China ORG did cut interest rates today DATE but only by 10 CARDINAL basis points that's not expected to have a Impact on how the economy responds because the cut was so small and analysts are expecting more to come in the future. Any of the country mate we'll be talking about trouble at the polls but that doesn't happen in a dictatorship at least that's not what he has to face might be key thank you we'll catch up with you later in the hour TIME on the week ahead and to you AMH as well the tension in DC GPE we've gotta pick up on In about 30 minutes TIME from now Victoria GPE the dynamics that we look at in the Chinese NORP economy as Mike PERSON described it if you put the data together right now the credit data on Friday DATE was not great The date overnight terrible that rate cut is that gonna make a difference If we're facing what a lot of people think we are facing which is some former bandit recession in that economy. I don't think it's gonna make a huge difference. I mean, look this rate cut was four CARDINAL they did 10 CARDINAL basis points Medium PRODUCT term but what they're really trying to do is fix the loan group that's The issue is so much and what they're so concerned about. Obviously, a lot of that is tied to the property sector. This morning TIME on how much they're struggling within the property sector while still trying to deliver over the last couple of years DATE and it's Lower demographic Age demographic with the property sector struggling and with the shutdowns just now ending I think we're in for some more negative news coming out of China GPE and how that relates to supply chains and issues flowing through to the US GPE and demand for US GPE from US GPE consumers for demand for Chinese NORP goods I Typically we talk about China GPE exporting disinflation Been exporting inflation because of these supply chain problems over the last couple of years DATE . What is the pass over the past three CARDINAL look like from this weakness we're seeing play out in that economy Yeah, you know, I'm actually a little bit more concerned with the pass through the past over there. We're gonna see coming out of Europe LOC . Natural gas that we're seeing there you couple Europe LOC being one CARDINAL of the largest buyers of Chinese NORP goods and the concern there then I think coupled together that's gonna Some concern it's why I actually agree with the idea that early 2023 DATE is when the US GPE might start to see some severe issues in regards to leading to recession not necessarily the rest of this year DATE but looking into next year DATE Or we'll see some problems. Well, in Europe LOC right to go and up, in China GPE , James PERSON , they're going down. Ask this question this morning TIME , James PERSON , I'll ask it of you. Are they confronting a liquidity trap In a Chinese NORP economy Is interesting right the terms that you use in the
Ask this question this morning James I'll ask it of you are they confronting a liquidity trap in a Chinese NORP economy This interesting right the terms do you use in there John liquidity trap balance cheap recession this is very reminiscent I mean if if if you've ever followed Richard Coo PERSON you you'll know his work well on on what happened to Japan GPE and and the difficulties with stimulating when you are in a balance sheet recession ultimately the short answer to that is that it doesn't matter how much you cut It's not the price of money which is the problem. It is the demand for loan for other reasons, not least that you have balance sheets, which need repairing, which is a problem, which is not resolved, easily, by low interest rates in Japan GPE 's case, it was offset, though not resolved by a lot of fiscal stimulus and that's why we've seen debt to GDP there all the way up to the sort of 25300% PERCENT See before is today DATE I don't think China GPE wants to make that mistake that's everything that they're telling is they understand the challenge and they don't want to make the mistake of heavily relying on monetary policy to try and deal with a problem which doesn't really have its roots in monetary policy. Ultimately China GPE has struck through challenges. These were inevitable. And you cannot solve structural And I don't think they want to I think first and foremost is you've already described though the priorities here are political in nature presidency needs to get through the congress ORG consolidate his power and then and only then really may he feel in Bolden to try and take on these challenges because they are difficult to deal with ultimate The big one is the savings rate. China GPE needs to get it's consumers to spend more and save less and nothing which has been on the table from Chinese NORP policy makers even really acknowledges that problem let alone profit a solution to deal with it. That transition to consumption domestically for a long, long time now. James Athy PERSON , awesome to catch up buddy as always. Victoria Fernandez PERSON there on the latest as well. We'll continue this conversation of the back of the, is it a bear market rally? Isn't it a bear market rally debate of the last month or so DATE ? Right now, negative six tenths of one% ORG . Covering up the morning TIME calls and later. Thanks for America GPE pushing back against the rally seeing further down side. That conversation just around the corner with Jill PERSON , Kerry Hall PERSON , looking forward to that for New York GPE this Monday morning DATE . Good morning to you all. This is Bloomberg ORG . Deadly forest fires receding rivers in this episode of Bloomberg Green PERSON we're focusing on extreme weather we'll explore the science behind the recent heat wave More extreme than it is now. I'm afraid that's inevitable. The consequences of extreme weather there is overall low awareness that heat kills Until recently there's not been as much effort to try and educate people about the dangers of heat. Solutions for the planet to mitigate and adapt. Government to lead on this and we need government to And stop sending Sam Headquarters PERSON in New York GPE and don't miss this week DATE 's edition of Bloomberg Green PERSON airing this weekend Bloomberg TV ORG . Quick take Aunt PRODUCT online. Minutes away from the opening bar this morning TIME . Good morning TIME . Empath manufacturing from the New York Fed ORG brutal.
5 minutes TIME away from the opening bound this morning. Good morning TIME . Empa ORG manufacturing from the New York Februtal ORG . Really really bad. Severe drop off an equity drop in two CARDINAL down 16th ORDINAL of one% on a SMP on the Nasdaq down about a third CARDINAL of one% or so The bigger reaction off the back of that data point was in the bond market yields heading south 2000 DATE 's and 30s DATE look like First ORDINAL up city group reiterating asparagus view on Cisco GPE expecting shares to remain undepressure and it continuing supply chain disruptions that stock is down by run about seven tenths CARDINAL of one% ORG your second ORDINAL call Limited ORG upside until inflation begin to stabilize with down there by about eight CARDINAL tenths to 39 14 and finally beam out downgrading dollar general to market the form recommending investors wait for a better entry point we're down there negative one. Two% on dollar general let's stop 250 CARDINAL in a free market After the longest weekly winner streak of the year DATE so far. Thanks for America GPE . Looking to fade the rally. We'll catch up with Jill Kerry Hall PERSON . Thank America PERSON next with This is Bloomberg PERSON . Cryptocurrency have been very popular and if a client came to you and said, look, I'd like some cryptocurrencies in my portfolio. What would you say? Oh, we've actually been really deep into crypto, Into learning about blockchain And all of the new businesses. You know, I would characterize this as Crypto Both in some of the currency baskets as well as with some adventure firms that are investing primarily in the computer area. I think it has the potential to be Lately game changing. But it is still Such the wild west and so it's so uncertain but there's Has the potential to completely upend everything. Renewable. This is a level of uncertainty that we haven't had to deal with. Television and radio. One CARDINAL of the most important things is looking around the corner.
24 seconds TIME away from the opening band in New York GPE this Monday morning DATE . Good morning. 4 weeks DATE of getting done SMP. Longest weekly DATE winning streak of the year DATE so time. The SMP 500 CARDINAL . A rally of close to 17% PERCENT of the lows are 2022 DATE . Futures this morning TIME . Negative by about five CARDINAL or 610 CARDINAL One% on the SMP. I'm a nice act. Done about a third CARDINAL of one% ORG . We'll talk about a small cap so they'll be late to this morning to Russell PERSON . Down by eight CARDINAL tenths of one% ORG . That was your open a bow. Switch to the border. Get to the bond Negative the alternative too down six CARDINAL basis points Negative 40 PRODUCT basis points ish on a two CARDINAL ten's curve in the effects market dollar stronger euro week a euro dollar just about holding on to 102 CARDINAL after breaking that level a little bit earlier this morning and francing sent to And many others too. More than five% to $ 87 MONEY and I ran about ยข30 that's across that set price section about 40 seconds TIME into this one that's getting some movers is Abby John PERSON well with this massively softer open here for US GPE stocks not surprisingly we have a lot of lagers Data out of China GPE and also the New York GPE fed ORG while accidental petroleum down three CARDINAL . Seven% this is crude as you were just mentioning down five% China GPE of course the world's largest user of natural resources so that's slow down really weighing on some of these stocks here marathon oil also lower no interestingly we have course Perhaps the idea if the world's second ORDINAL largest economy is slowing down again what does that mean for the US GPE and Europe LOC and then finally Apple Off ORG of its lows down ever so slightly looking like it may actually flip higher not so long for now John. Minutes into this. Super super defensive. We're down four tenths CARDINAL of one% ORG on a S and P. Just look at the sector composition here. The app performance coming from utilities, staples, health care, real estate. You might have guessed that. Give them a move we're seeing and yield to financials under performed down 19th ORDINAL of one% ORG . Really defensive as I say materials, energy, not About three CARDINAL . Eight% on the SMP 500. That's the broader recording market on the SMP. What I talk about a Russell 2000 breaching is 200 day DATE move in average in the previous session. Ed Cliff PERSON sold of Ned Davis PERSON saying the following. Small caps tend to out perform in an early stages of Market rally. It has room to outperform for at least the next several weeks DATE . Take us back with us for more. Hey, Taylor PERSON . And John PERSON , I read that note coming out at the end of last week DATE and really interesting and indeed, up until today DATE , you did have a Really a big out performer. Let's talk about some of those key tactical levels. Right now, we're just holding on to that 2000 DATE on the Russell 2000 WORK_OF_ART . I've a 200 day DATE moving average at 2011 DATE Touchdown GPE on Friday DATE just below it but really right there on the line when you think about some of those key 200 day DATE moving averages and the technicals and the strength that You talked a lot about that Davis PERSON note there of course At the beginning of these rallies Strength ORG has been a big headwind for some of the big multinationals as they translate a lot of their overseas profits back into a Nominated Russell 2000 PERSON you could argue maybe doesn't have a lot of those headwinds as there more maybe domestically focused more US GPE focus and so you don't have that translation adjustment on the balance sheet indeed you have that big out performance Relative to the S and P 500 here is you think about maybe dollar being a tailwind instead of a headwind finally take a look at some of the individual Russell 2000 Do we call this a new bull market or do I get in trouble for saying that? If we're off, more than 20% PERCENT from some of those big lows. I think you can call it whatever you wanna call it, Saver. I'll give you a I'm still trying to work out. Is it a bear market rally? Is it a bull market? Something durable. Taylor PERSON was I said earlier on the program. Someone came up with the best response to that. The difference between the two CARDINAL hindsight And it's always the same thing. You always know a lot later on. Taylor PERSON , thank you. Breaking it down for us. Take a risk there. We are about 3 or 4 minutes TIME
The difference between the two CARDINAL hindsight and it's always the same thing. You always know a lot later on. Taylor PERSON , thank you. Breaking it down for us. Take a risk there. We are about 3 or 4 minutes TIME into this and I have to say beneath the headline. There's a lot going on. At the headline at the surface the SMP 500 not doing much at all we're negative four tenths of one% ORG the Nasdaq ORG totally unchanged the division on Wall Street's not going anywhere you know the story more can stand the other one side JP Morgan ORG on the other walking to With everything looking for weaker profits and rising rates to put stocks lower JP Morgan ORG saying guess what Kelly PERSON lines to this camp continue yeah you can always count on these two CARDINAL to disagree with each other John if you can count on anything at all and of course what they're disagreeing on now is the trajectory of the equity Over the last 4 weeks DATE the longest weekly winning streak for the S and P 500 going back to November up 2021 DATE that has brought the index up Percent ORG since it's low in mid June DATE the Nazdac ORG 100 CARDINAL is up about 22% PERCENT since Primarily driven by rates sensitive grow stocks as bond yields have pulled back and they say that any ship back in the value Ultimately they think the S and P is going to end the year at 4800 CARDINAL then there Take from the bear Mike Wilson PERSON who's target is down at 3900 for June 2023 DATE he says that this Slow ORG down. Profits are going to weekend DATE . He has been talking about margins for some time now and he says, all of that adds up to a not favorable risk reward when it comes to equities. There's also Actually pointing out that although buyback operations have jumped 18% PERCENT so far this year DATE to 856 1 billion dollars MONEY actual On stock repurchases saying 21% PERCENT in the second quarter DATE compared with the first ORDINAL and of course there's a new tax policy potentially that needs to fit into this equation as well but that could be another hurdle Benchmark S GPE and P this year Sean NORP . Kelly PERSON , thank you. We used to this story. Kelly's gone through it. Morgan Stanley ORG , the one side, JP Morgan ORG Right now just publish your moments ago here's the quote CPI Miss an average alley earnings beat plus weekling demand equals bad for corporates beneath the surface real growth remains weak and investors laser focus Fed ORG combating inflation via short rates ignores the elephant in the room and police to say that Jill Kerry Hall PERSON joins us right now Jill PERSON you and the team you're pushing back just walk me through the white. Well I think you know what we've seen recently is we're we're still seeing evidence of strong inflation you know CPI was Higher than expected. So, you know, we think this is a recipe for risk to margins for breast and P 500 CARDINAL companies. Consensus For margins to return to to peak levels next year DATE and you know there there's still looking for high single digit earnings growth this year DATE and next so you know we we think the outlook and in light of the macro conditions has has looked optimistic We enter a mild recession so you know we have had We Earnings could actually decline next year DATE if if we do go into recession so we think it's you know at this point is about We would be selective within areas of US GPE Is weather this is just a bear market rally or something more cheerable You and Savita PERSON and the team basically have this list of signed posts that need to be triggered to signal the end of a bear market run What are those signed posts and how many of them have actually been triggered and did this work back in spring 2020 DATE ? That's right. We we look back historically at, you know, the the the prior markets and then, you know, what usually happened before a new bull market occurred and you know, bare America GPE rallies are pretty common to seeing these, you know, five or even 10 Rallies up from the lows but still within the context of a
And it has an impact it slows the economy and of the economy slows corporate profits go down we have not seen those earning estimates come down yet and that's really We're waiting for Nadu. What would you say to people say that say that maybe some of this is just too early that maybe the witness Really come until the front half of 2023 DATE in this conversation's premature Chris Harvey PERSON was fargo taken that view what would you say back Look, I mean, I think there's there's a lot of signals out there right now that we're watching. When you look at, we we have a regime indicator within the US GPE that monitors different Territory ORG . Data ORG has remained strong. We think that is a continued case for the fed ORG to to continue hiking this year DATE . You know, we we do expect, you know, two CARDINAL more 50 CARDINAL basis point, hikes, and then a 25 CARDINAL basis point hike before the fed ORG goes on pause and then ultimately starts cutting in the You know continued late cycle you know soft landing but Volatility from here you know we we do think there are opportunities right now as I mentioned so you know typically when volatility Total returns rather than than price returns and and Been favorable on, you know, US GPE small caps over large caps. Even if we we are in an environment where recession risk is high, we think that, you know, there are some fundamental tail ones to small And there are also, you know, at this point, small caps are more adequately pricing in the risks of a recession. For small cats. The Russell PERSON 's done about one% ORG today but that's not indicative of how it's performed over the last few months DATE or two CARDINAL but you'll just walk me through that. Sure, so I think, you know, we've, we generally seen over the past, you know, since Small PERSON caps are much more exposed to the the service side and the economy. We've also seen, you know, one of the takeaways from the starting season is that, you know, even though Guidance ORG is held up Across the board. So, for both large caps and small caps, you've seen our names guidance. It's kinda surprised the upside but one CARDINAL particularly positive thing for small caps is that capex spending has held up very well corporate sir are still investing. That and they've been guiding very A lot of companies are gonna need to spend Cycles than large caps are Catch PERSON up as always. And a team over at BFA ORG pushing back against this rally over the last month DATE and as I say they're not alone or can stand there alongside them JP Morgan PERSON pushing back note out Marco Klanovich PERSON and a team over at JP are gonna publish a little bit later today DATE . I look forward to reading that. Right now, about 12 minutes TIME in. We're down a half CARDINAL of one% ORG . I said not much going on at the surface Beneath the surface though energy is getting hammocked we're down more than four% on the SMP and that's slightly off the back of what's happening with crew this morning TIME I can tell you Brent and WTI getting hammered too we're down by more than five% on WTI 287 on Brent down a ran about Percentage points on Brent GPE to 93 20. I mentioned the data out of China GPE one CARDINAL bad. The day travel to the US GPE this morning TIME . Empire manufacturing too. Ugly. That's really when I'll come out and see this morning Just Brent and WTI but also carpet and some of the base metals too. Coming up we'll turn to politics in Washington GPE . The former president in some hot water. No one is above the law Donald Trump PERSON is not above the law Congress ORG has the powers of oversight he needs to comply
I'm next. The difference between missed opportunity And actionable intelligence. Strategic advice Bloomberg Law PERSON offers an unmatched platform of analytics tools and business intelligence. All to help improve productivity mitigate risk and inform decision making for the comprehensive platform that helps you work smarter and faster to differences Bloomberg Law PERSON And you're one of the most fascinating entrepreneurs 'cuz you all started really young. What did you learn? Did you always think that you'd be an entrepreneur Probably yes. Word and and still can't again. It's it's sort of in my blood but it it's really fun starting a business. It's and fun growing a business. I feel it's a real privilege. And I started my business officially at 18 CARDINAL but I think I knew I wanted to do it very differently from about 15 CARDINAL . But I'm sure it's you know if you're surrounded by it feels very natural. So so yes it's It's fun. Making you want to By my mother when I was about 61 if her whole time bags and I remember how it made me feel and I think fashion is fascinating for the mood changing the confidence boosting aspects and sort of tribal aspects of of what fashion does and so I went at 18 CARDINAL to Florence knowing that was the home of a beloved which is Interested me. I just wanted to learn that she'll be surrounded by craftsman who are making things as important and that's gonna be very interesting. I think over the next sort of 10 years DATE . I think the onshoring of of craft and manufacturing is gonna be fascinating. Actually, when I watched the offshoring, I literally saw it. And I think we're gonna be seeing that coming back. To local. We have to Objectives in terms of carbon you know proximity is gonna be key. Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. No one is above the law. Donald Trump PERSON is not above a law. He needs to comply we've seen material like this before we've seen materials that have been submitted to courts for for warrants this is not unprecedented his actions are unprecedented Lawmakers pressuring the US GPE government for classified document cease that Mari Largo PERSON The law is king the president isn't king and I would add to that former president isn't king everyone has to follow the laws this is gonna be up to the justice department ORG to make a decision about what happened here AMH down in DC GPE for more Anne Marie PERSON this was the story in Washington GPE over the weekend Yeah it certainly is Jonathan and Senator there also said in that interview that when she has had in the past to go look at these types of class Documents GPE that are top secrets you had to take her off when she goes into these rooms called skiffs to look at these documents so you see the politics following that
Classified documents that are top secret she had to take her fit bit off when she goes into these rooms called skiffs to look at these documents so you see the politics following that raid really reverberating on both Of the aisle and what you have is both sides of the aisle asking for the content of those documents. So, you have senator Warner ORG who's the chair of the senate intelligence committee ORG along with Vice Chair PERSON , Marco Rubio PERSON , obviously, a Republican NORP , and a Democrat NORP asking the DOJ ORG and the office of the National Intelligence Director ORG for the contents of what was in Documents 11 EVENT sets of classified material was taken from Mar a Lago where their president has a residence and also his resort in Palm Beach GPE Florida GPE the question really is is if they find out the contents of that what comes next Republicans NORP it'd be really wanna know that justification for going into the president's private home and his residence and for the Democrats NORP is really about whether or not and how or how they could show that potentially national security was compromised by this action Emily on Friday DATE gone into the weekend DATE as ours bust after hour Asked. We got a fuller picture of what actually happened and took place over the last few months or so DATE . Things have gone quiet now. I'm ready. Do you have a decent idea of the timeline for the week ahead DATE and what we can expect While many are pushing for we heard from representative Brian Fitzpatrick PERSON over the weekend DATE talking to CBS ORG 's face the nation he was saying that we need to know the justification for this he's a Or FBI ORG agent so he's also telling his Republican NORP colleagues to be careful for the words they use cuz we've have seen an uptick of rhetoric and what the FBI ORG and the DOJ are telling their their individuals that work for them is They are concerned about potential threats. There's a many Republican Party ORG pushing for the affidavits. We can get more information behind really the why but at the moment, Jonathan ORG , a lot of this, they're really is no timeline. It's wait and see depending on what the Department of Justice ORG and FBI ORG do or say next. Big focus down in DC GPE for the week DATE ahead and beyond that's for sure AMH Dan PERSON in Washington GPE Amary thank you our focus of course is on the economic date we got retail sales a little bit later this week DATE some fed minutes as well a little bit of peace and quiet from the Just a little bit because you will get some speakers and a mix later this week and then might be key into next week DATE is Jackson GPE how Wyoming time All gonna be out riding horses is that what we're doing? Yes. We got it. We gotta teach you to do that. Is that what I've signed up for? Can we talk about the data About the data and it's gonna be interesting this week DATE because a lot of it is gonna tell us things we already know. It's just a question of degree. On Tuesday, tomorrow DATE , we have housing starts. We know the fed ORG has affected housing with the entire interest rate Empire today DATE . Might be worth a look. Retail sales is gonna be the big one of Everybody wants to know whether the consumer is still hanging in. Of course, that's influenced by the fact that oil is a big part of it with gas The fed minutes I don't think it's going to be all that important and the reason being it was 3 weeks ago DATE and we've had that strong jobs report and weak inflation reports Because of empire And then as you mentioned, we have some FedSpeak ORG , George Kashkari PERSON , and Barkin George PERSON the only voter. So, we'll see what she has to say. There is another aspect to Next week DATE and that gets to the title there about what they say. Got a lot of retail earnings when starting with the discounters. Walmart and TJX ORG and Cole PRODUCT 's plus Home Depot ORG and Lowe's ORG . Will they tell us the Is doing better or worse going forward. What's their outlook? We'll get the backward look from the Consumer going forward with their inventories going forward and of course, remember, Walmart ORG sells gas Yes and gas is gonna be a big feature of the numbers coming up on Wednesday DATE and retail sales might for that reason and we focused on the control group as oppo The headline retail sales number. Rid of cars and we get rid of building material and we get rid of gasoline and that'll give you a core group that basically is kinda GPE what goes GDP crude right now getting hammocked the S and P 500
Building material and we get rid of gasoline and that'll give you a chore group that basically is kinda what The GDP crude right now getting hammocked the S and P 500 CARDINAL energy companies getting hammer too might be key Samro PERSON ask this on Twitter PRODUCT when did you last see in an official report on economic data the word plummet Been a while hasn't it? It's been a while. We saw that with the Empire GPE number today DATE . We'll see if anybody else does that. That'll be the in Numbers ORG were a small drop We're looking for plummet in terms of inflation. We're not looking for it in terms of production. Absolutely. Energy equities down might be key the data week DATE might make thank you and yours down too on a 10 year DATE by seven CARDINAL basis points to about 276 CARDINAL on a 2 year DATE by let's call it six CARDINAL basis points to about 318 CARDINAL . I mentioned we're a bit defensive this morning TIME and you see that almost everywhere. The SMP down about a quarter CARDINAL of one% ORG . No trauma at the headline number but elsewhere beneath the surface. A lot going on. Coming up the market moving events you need to be watching. I'll run you through the trading diary from New York City GPE . This is Bloomberg PERSON . We were thinking big from the beginning I mean the reason that I I was interested in doing this in the first ORDINAL place was a much bigger challenge than making it comfortable shoe or or doing something in the fashion industry as AA narrow opportunity we we thought that There was a big leadership opportunity. Every single year DATE and it was 100% PERCENT made from plastic and that the hides from cows and it was terrible for the environment and we thought that we could offer something to consumers that was Compete on a totally different factor than what the rest in the industry we're doing. 25 minutes TIME into the session no drama of the headline level on the surface with down about a 10th CARDINAL of one% on a SMP then that's next now positive the Russell PERSON struggling down eight CARDINAL sense of one% ORG but energy Somewhere between four CARDINAL and five% off the back of some pretty dreadful day throughout of China GPE In the US GPE too. A surprise action hits you training diary. More data still to come. Us GPE housing starts coming up on Tuesday DATE . Retail sales in 5 minutes TIME on Wednesday DATE plus GDP out of the Euro ORG zone. The Fed ORG 's S the George and Neil Cash Gary speaking on Thursday DATE followed by existing home sales and another round Jobless claims from New York City GPE . Thank you for choosing Bloomberg TV ORG . This was the countdown to the open front. Audience worldwide with their colleagues doing just about okay. This is
Most of us don't spend much time thinking about the grid the dizzily huge system of cables transformers and outlets that reliably powers our lives it's an easily ignored change resistant part of the modern world and that's the way we like it But as we move towards this planet melting ways of producing electricity the grid is going to have to evolve too. So many countries and governments announcing high targets when it comes to decobonization and being climate neutral. But this is just one side of the coin. It's not enough to simply generate green energy. We also need to make sure that this transmitted and distributed to the end consumers. The grid of the day just isn't equipped for renewables so a new kind of grid is starting to take shape The super grid That's essential. You see that coming? The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Can Griffin is moving both sit it out and send it all security is to Miami GPE the scooper's broken by Bloomberg PERSON 's Amanda Pepsi's ORG number fever campaign in the Philippines GPE has probably gone down in history as one of the biggest marketing disasters in history Mainly because of a human era that led Perhaps need to print more winning caps than they The resulting chaos caused riots Rest ORG . Reporting this story took over a year and it resulted in me flying to Manila GPE in the Philippines GPE to meet unlucky winners. And to find out exactly what happened back then in the 1990 DATE 's. My name is Jeff Mesh PERSON . I'm a journalist based in Los Angeles GPE . I wrote the story for Bloomberg Business Week ORG about Pepsi ORG 's number fever campaign. The Philippines GPE is a really interesting country. It's made up of thousands CARDINAL of islands. It's also a country that's very heavily influenced by America GPE They're obsessed with Frank Sinatra PERSON music for example. They love all things America GPE and that extends to their their love for soft drinks Pepsi Cola Coca Cola ORG In the 1990 DATE 's it was everywhere Pepsi ORG and Coca-Cola ORG were in broiled in what is now known as the cola wars. It was a fierce
Pepsi ORG and Coca Cola ORG were embroiled in what is now known as the It was a fierce battle Dominance ORG . Number fever was already a really popular promotion. It had been rolled out in America GPE to great success. Pepsi ORG decided to roll it out internationally particularly in Asia LOC they thought it was the answer to their problems they thought it could finally help them beat their biggest competitor. Hey Hey Newspaper Millionaire. A one 1 million QUANTITY pesos or $68 thousand MONEY doesn't sound like a lot now but in 1992 DATE that was a phenomenal amount of money You've gotta remember that in the Philippines GPE at the time the average monthly DATE income was about $100 MONEY so Was wealth beyond anyone's wildest imaginations Number fever caught fire in the Philippine NORP Kids were saving up their pocket money to buy a bottle of Pepsi ORG Was squirreling away all of the bottle caps in bags you would walk down the street and people were going through trash trying to find discarded bottle caps It was a national phenomenon. Perhaps he posted that half CARDINAL the population of the Philippines GPE was playing it. Number five CARDINAL boosted Pepsi ORG sales every month DATE from 10 1 million dollars MONEY to 14 1 million dollars MONEY . It had a huge impact on Pepsi ORG 's bottom line. Number fever quickly became number hysteria Aids were being jailed for stealing there employers winning bottle caps there was even Murders over over winning bottle caps people were fighting in the streets Over these caps. There was signs that they were going to be problems with number fever very early. Pepsi ORG had rolled out the competition in Chile GPE and a garbled facts had caused some kind of problem with the winning number. They'd announced the wrong one in Chile GPE . Cause a riot there was signs that there could be big problems ahead They didn't keep their eye on the ball. So, in 1992 DATE , Pepsi ORG decided to extend the campaign in the Philippines GPE and they announced that the competition would go on for a few more weeks DATE . One night TIME on the television news they announced the latest winning number. 349 CARDINAL . The problem was Earlier campaigns so there were literally hundreds of thousands CARDINAL of bottle caps with 349 CARDINAL just floating around the Philippines Hundreds of thousands FAC of people all across the Philippines GPE thousands CARDINAL of islands Finding winning bottle caps 9349 PRODUCT . Some people had 10 CARDINAL lucky 349 CARDINAL bottle caps People are dancing in the streets celebrating Thought their problems were over. They were millionaires. Still not certain exactly how many winners there were of lucky 349 CARDINAL bottle caps but we know that Pepsi ORG printed over 600 1000 QUANTITY of them Pepsi ORG realized very early that there was a problem Hundreds CARDINAL of people started arriving at their buckling plants with their lucky bottle caps They realized something was seriously wrong Perhaps he tried to solve the problem by offering a small token donation to anyone that brought a lucky bottle cap. To their bottling plan. But it wasn't enough People didn't want just a handful of pesos. People wanted their one 1 million CARDINAL peso priors. Within a year DATE violent protest and riots outside Pepsi ORG factories would leave dozens CARDINAL injured and five CARDINAL people dead. At one CARDINAL Pepsi ORG factory in the Philippines GPE . It killed three CARDINAL Pepsi ORG employees. Anna see to Rosario PERSON was school teacher living near Manila GPE in the Philippines GPE She was one of the tragic victims of this whole thing. She was
Rosario was school teacher, living near Manila GPE in the Philippines GPE . She was one of the tragic victims of this whole thing. She was walking to a nearby store to buy some rice 1 day DATE when a monotop cocktail was thrown at a Pepsi ORG truck And and a violent protest. It bounced under the truck and exploded. It killed her Innocent bystander who was just a child and injured many others. When I was in the Philippines GPE , I tracked down Annasita GPE 's daughter, Cindy ORG , and her husband, Roll, It was clear to me that they were still very upset You know a family had been ripped apart by this competition Told me that he'd never remarried. He'd That he'd gone to meet Pepsi ORG executives after his wife was killed He was angry. He he said to them, you know, this wouldn't have happened if it wasn't for you. If it wasn't for number fever. The biggest revelation from my reporting Remove that Pepsi ORG with somehow involved in bombing their own drugs. On the newspaper report with a headline that said Pepsi Goons ORG bomb their own trucks and when I visited the MBI the police In in the Philippines GPE by presenting me with documents and interviews with people who claimed that Pepsi ORG had paid them to cause riots and to cause trouble Their plans. Order to destabilize the situation into frame the owners of the coalitions There were there were fighting them to try and curry favour I just thought that was that was so shocking and of course Pepsi ORG denied it but How bizarre that a company would be accused of bombing their own trucks? The contest had sparked so much anger in the Philippines GPE because it landed at just this really weird time in the Philippines GPE history. It was during a crazy election that was With allegations of fraud the Philippines GPE was in a kind of love hate relationship with America GPE They loved obviously the American NORP aid and finances that was pouring into the country Philadelphia GPE Was a local preacher living in Manila GPE and he hated the number fever campaign Del Fierro PERSON thought Pepsi ORG 's number fever campaign was just one of the many ways that America GPE was asserting its dominance over a third ORDINAL world country. He hated seeing his fellow countrymen get ripped off in his eyes. By this huge multinational American NORP company. Don't fear oh rounded up over 800 CARDINAL winners of 349 CARDINAL bottle caps I think got them all together to Sue Pepsi For over 400 1 million dollars MONEY to be divided between those holders of lucky bottle Don't fearo took money from summer fee people who could afford it they paid in 500 CARDINAL pesos to help with legal fees but for people who couldn't afford the the money he would just represent them pro bono Hey Hey Facebook He flew to America GPE And he hired two CARDINAL consumer lawyers here in America GPE to take on Pepsi ORG . He had a meeting at Pepsi ORG 's headquarters to try and resolve the problem. But he said he wanted to take it all the way to the highest courts in America GPE . When those cases were heard in America GPE those courts decided that this was a problem that should be heard in the Philippines GPE not in America GPE . Back in the Philippines Delphiaro continued his case in the Filipino NORP courts At one CARDINAL stage there were arrest warrants.
Back in the Philippines GPE Del Fierro PERSON continued his case in the Philipino courts At one stage there were arrest warrants handed out for nine CARDINAL Pepsi ORG cola executives. Which he saw is a big victory. We don't know if those arrest warrants were ever upheld. But it made newspaper headlines across the country. There's been so much Hey kindly to Del Fierro's GPE campaign Tried ORG everything to shut him down They sued him for libel My father had to attend three CARDINAL times a month for a brunch 145 CARDINAL and another heating for the brunch 130 CARDINAL also two CARDINAL times a month Also there was a timer my father was hospital Otherwise We're not attending the judge will issue what a My father passed away January 13 DATE when then after stay for almost After the death of my father I was inspired to do the website Mexico GPE will be remembered for what they did to the consumer in the Philippines GPE and to my father When I reached out to Pepsi ORG for comment for this story They claim that they didn't have access to anyone who was working at Pepsi ORG that was around in those days. They also said that during COVID-19 they didn't have access to their their documents about this but You know they were very they were very careful to say that they were sorry for everything that happened and we do know that Pepsi ORG did try everything to try and make this right. The Pepsi ORG number fever disaster Cost the company millions CARDINAL . We know that they paid up to 10 1 million dollars MONEY in those goodwill payments But the financial effect We know that Pepsi ORG sales dipped They were overtaken by Coca-Cola ORG again Pepsi ORG 's number fever disaster To the legacy of that soft drink in the Philippines GPE forever Some people age won't touch it. For many people Pepsi ORG is a taboo word A lot of the people that I spoke to were still quite traumatized By their experience buy that Experience of winning a one 1 million QUANTITY pesos Poverty in Manila News of the Came out. It was a massive story in Germany GPE . We are following some breaking news coming to us out of dortland in Germany GPE . It was covered by all the media outlets. Three CARDINAL roadside explosions triggered at the same time last night TIME as a coach left its hotel in the south of Dortmund GPE . Public figures commented on it. Let them affect our our life. Whoever it was. The media echo went far beyond. Don't mind. I think it was front page news and every single big paper around Europe LOC Everyone thought of like a terrorist attack and people were scared that throughout the city in Dolphin GPE there was more tax to be happening. Unbelieved to investigators just after the bomb went off and the the Areas of the team ORG were shell shocked the person who had masterminded the attack was actually sitting In the hotel Steak GPE and sweet potatoes.
The attack was actually sitting In the hotel Steak GPE and sweet potatoes. My name is Thomas Rogers PERSON . I'm the journalist who wrote the article the get rich quick scheme that nearly killed a German NORP soccer team. Don't mind is a midsize city in the western part of Germany GPE in the state called Northwine West Australia ORG and it's a former industrial city that's kind of fun on hard times in the last few Decades DATE . It was severely bombed in the war. So the center of the city is quite stark. Some of the few high points includes it's soccer team. My name is Aiken ORG . I'm a reporter with Bloomberg News ORG and I'm a great fan of Boris Airport PERSON . Talking friends are super loyal on all match days DATE the entire city is in black and yellow it's like a religion I think more than German NORP cities Soccer does play a Very large rule in the identity of Portland GPE . In October of 2000 DATE the BBB Became the first ORDINAL team in the Bunasley PERSON get to actually go public salaries for soccer players in Buenas Lega PERSON have gone up very dramatically with such high prices they thought that by by going public they would be able to compete better with big teams like by endure unfortunately that didn't go too well but when bought too many expensive High wages and the club almost went bust in 2005 DATE but the price of their shares it has sometimes gone up but Gone down since they made that decision So on April 11 2017 DATE the team was staying in a hotel on the outskirts of Dortmund GPE . Next day DATE is always special in Auckland GPE . Everyone is looking forward. The team always meets in the same hotel ahead of matches. They stayed in this hotel in order to have a kind of neutral space before games so that they could Concentrate be a sort of isolated from distractions things like that. Everyone was pretty optimistic that a chance to go really far maybe into the finals. I was in the office and getting ready for match day was gonna meet with a friend a fellow dortman supporter in a pub as always the fans are very excited about matches on that We're heading to play in the quarter DATE final against ASMO ORG at signal you do not stadium which is Center of Dortmund ORG . It's really before a 7 PM TIME the players of the team boarded their official team bus Took off the parking lot of the hotel and turned on the street where three three CARDINAL detonations three CARDINAL bombs that exploded and hit the bus of Dawkland GPE Occurred close to the bus the B team bus had just left the hotel. The explosions destroyed two CARDINAL windows in the rear part of the bus People jump to the ground. The Supposed to watch match with he called me and said turn on turn on the TV to was an attack of the dolphin bus and I thought he was like there was impossible. Some of the players screamed at the To keep driving as fast as possible because they were worried that People might storm the bus Metal pins and the one her pierced a seat headrest The team members the actual As they were to some parking the bus was actually eating steak and sweet potatoes at the hotel they had just left Authorities ORG are attempting to verify a letter left at the scene claiming jihadist were behind the attack because there have been a series of attacks by Islamic NORP terrorists in Germany GPE and Europe LOC . There was white spice suspicion in the media that this was another Islamic NORP terror attack. Three CARDINAL letters were found at the site of the bombing that took credit
Media that this was another Islamic NORP terror attack. Three CARDINAL letters were found at the site of the bombing that took credit for the attack on behalf of Islamic NORP state. There were however reasons to to doubt this particular narrative. Would actually be a surprise. If Isis PERSON were actually This this attack possibly could be employed by other groups at the far right wing to try and shift the blame. The letters had some strange qualities. They were written in a strange German NORP that used big sophisticated words but have basic grammar mistakes as if someone was native German NORP speaker but pretending to be foreign person federal investigators have detained one CARDINAL man suspected of links to Islamist NORP terrorism one CARDINAL of two CARDINAL suspects who's apartments were raided this morning TIME Shortly after the the bombing a man in Austria GPE named Rudolph PERSON who is a was a big BBB ORG fan he Said PERSON something strange what's going on on the stock market related to the team shares the emailed the lawyers of BBB ORG who then That email on to investigators. The email stated that someone had bought 60 1000 CARDINAL BBB ORG put options a wager that the value of the shares of the team would fall below a certain amount of certain date Why would someone buy that ahead of a match and then Bombs go off something, something, something is right here. For the person to make money off of that, it require the stock to go down quite a bit in a fairly short period of time and it wouldn't just be The team losing match it would require something much bigger than that. There was another big red flag about this purchase which is the fact that it had actually been made. Number one CARDINAL on the date of the volume but also from an IP address that had been traced to the actual hotel where the bombing had taken When three CARDINAL explosions targeted the bus carrying the burasio dortman footballers on April the 11th DATE written notes left at the scene claimed the attack was the work of I saw The truth as is now alleged is remarkable On April 21 DATE the police arrested a man in a Southern German NORP city called Tubingan it was on his way to work and his name was If you seem like an unlikely suspects because he had no known connections to the Islamic NORP terror world he didn't seem like a far right extremist he didn't seem like a left wing extremist either he seemed to be a completely Remarkable young man. A 28 year old DATE german Russian NORP man named only a sergei W stayed in the same hotel as the players on the night before the bombing he specifically requested an upper Overlooking the bushes where the explosive devices were hidden. The media diceected why he would do that. What was his past? He It's been inspired by the 2015 DATE terror attack in Paris GPE and he noticed that in the aftermath of the attack the stocks of French NORP companies went down and he'd believe that if an attack took place that was directed at a specific company That the decrease in stock price work for that company would be even more dramatic. It never occurred to anyone that someone would do that out of greed. Suspect bought three CARDINAL different derivatives on the Borsia Dortman NORP shares with all these derivatives he bet on falling shares The suspect bought the majority of these financial products on the 11th ORDINAL of April the day of the attack If the plot had been completely successful And the stockhead reached a value of oh inner gold would have made up to โ‚ฌ570000 MONEY with the equivalent of about $608 thousand MONEY . Ultimately the plan Be backfired the attacker Court. He would be extremely quiet. He usually kept his hands class together. One CARDINAL of the lawyers actually commented that he had never A defendant act so calmly Vinor Gold PERSON had served sometime in the German NORP military. From that information and from all.
A defendant act so calmly Luvina Gold ORG had served sometime in the German NORP military. From that information and from online research she was able to figure out how to assemble remote detonated bombs that would do He hoped to do There were a few days of extremely emotional testimony The soccer players who describe stouting whether or not they could ever play another game again. It brought everything back up and it didn't quite help them to kinda process what was going on Throw it at all. He sat there Silent. The big mystery that was swirling around the trial was the question of why May DATE have simply done it because he wanted to impress a woman. Rebecca is a young woman who has a very troubled home life. She ultimately sees her relationship with Vinergold PERSON as an opportunity to leave that troubled home. Vinegar Gold PERSON is a Russian NORP immigrant to Germany GPE . He speaks with an accent. He has In large groups of Germans NORP she begins to resent the fact that he has these fears and feels a little bit trapped but Rebecca attempts to dump him on multiple occasions and teeth threatens to commit suicide if she leaves him. Vendor Gold PERSON apparently told Rebecca that she would soon be seeing a surprise. After Being dumped via text message he apparently began planning for this attack and earnest. Vinegar Gold PERSON was charged with 28 CARDINAL counts of attempted murder which carried a maximum sentence in Germany GPE of life in prison If you claim that he had nothing to do with the attack but as time went on he admitted that he had actually been the person who had The explosives and had set them off But he claimed that he didn't want to actually kill anybody Ultimate ORG gold didn't receive the harshest possible sentence he was given Years in prison but it's still a considerable amount in in jail in Germany GPE . The threats have been asteroid hitting earth is very real. If it's big enough it's also very final These are very very infrequent events. The probability is not oh though. Flash of light streaking across the sky. About 100 tons QUANTITY of space rock falls on earth every day. Most of it is so small it burns up in our atmosphere all lands unnoticed away from major populations No human in the past 1000 years DATE is known to have been killed by a meteorite And according to Nasa ORG no large object is likely to strike the earth anytime in the next several 100 years DATE . However, Is certain. Haven't found them all. There are thousands CARDINAL out there Don't know where they are. There are a lot of asteroids in our solar system The number in the billions CARDINAL . And deflecting the most catastrophic of natural disasters. The race is on to find as many of these objects as we can. Calculating whether or not an estrogen is potentially
And deflecting the most catastrophic of natural disasters. The race is on to find as many of these objects as we can. Yes, a way of calculating whether or not an asteroid is potentially dangerous or not. I mean, I think it's something worth investing in. Sorry. Right? Amy PERSON let's get this one out of the way it's probably the question you get asked the most but how scared should we be? Asteroids and comments are a natural Out there like a lot of other natural hazards. These are very very infrequent events. These collision events where Object ORG actually impacts the earth LOC . The most important thing that we need to know about asteroids is when the next impact is gonna happen and how bad it will be. What we know is that an object that's about say a kilometer across is capable causing very very wide devastation across the planet really truly global devastation. The object that wiped out the dinosaurs was somewhere in the neighborhood of five to 10 km So QUANTITY , even bigger than that At a kilometer QUANTITY it's still gonna be very bad and we'll have global effects For objects that are capable of causing whatever call sort of regional damage kind of a large major metropolitan area a city and it's surrounding environments sort of around a hundredish meters it depends on the details of the By the 1980 DATE 's Nasa ORG was cataloging near earth objects. In 1994 DATE stargazers watched as comet shoe make a levy nine CARDINAL hit Jupiter LOC . The resulting zone of chaos was estimated to be as large as the earth LOC . In the event became its turning points in the search for asteroids and comets in our solar system. In 1998 DATE Congress ORG task Nasa ORG with finding 90% PERCENT of asteroids and comets one km QUANTITY wide or larger. Soon after Hollywood GPE blockbusters armagedon and deep impact brought attention and fear to the masses The great news is that the vast majority more than 90% PERCENT of all the really large one km near earth objects have been found. The challenge now is working down to the smaller sizes that are still quite capable caus Lot of damage but they're just harder to spot because they're fainter. They're smaller. Can you give us a sense of how many are out there in our solar system? We know that there are a lot of asteroids in our solar system. The number in the billions CARDINAL , most of them, however, are between Mars LOC and Jupiter LOC and what we call the main asteroid belt. This is a region of space where most of the afternoons in the inner part of our solar system live and they stay there for many billions of years. There's another Somewhat PERSON close to the earth. And we call these near earth objects. We think that there are millions and millions of nearer objects that are out there in the total population. As of today DATE , we know of the sort of around 2025 DATE , 1000 CARDINAL something like that When we first spot an object, we we really know very little about it. We just see something moving across the sky All you get is just sort of a handful of snapshots just enough to be able to tell that this isn't an asteroid that we've already seen before and then once we can calculate the distance to it, we can now start to make predictions about its true size. Is it Or is it small So we have a lot of information that we have to get pretty quickly to really understand what's going on. Finding asteroids is just one piece of the puzzle. Planetary GPE scientists are extremely skilled and determined in the orbits and speeds of asteroids based on relatively small amounts of data. Nasa ORG run simulations of the trajectories asteroids could take which is useful but time consuming A team of scientists in the Netherlands GPE have found a way that could buy us more time. Our methods is very quick. So you can very quickly get an assessment of whether or not your objects is dangerous or not. If you look at the classical way of determining the danger of an asteroid. It may take you know days of computing time on very big machines To to determine this this hazardousness the current problem is that there's just too many asteroids out there to us and a huge amount of computational power on all of them So the neural network allows us to focus on what really could go and
Spend a huge amount of computational power on all of them. So the neural network allows us to focus on what really could go and Post ORG a hazard to earth. A neural network is a computing system that mimics the way the human brain operates to find underlying relationships in a set of data. By training the network in this way you you train it in recognizing those objects that are most likely to hit the planets. And once it strains you can apply it is network to all the unknown asteroids. And then you can make a selection and saying hey this is these are the ones which appear to be having orbits similar to the ones which we know are hitting the planets. That doesn't mean that they do but it does it only means that they look very similar to once Know they do. What else did you find? Should we be particularly concerned about anything? That we did find is that our neural network was able to go and identify a handful of asteroids which weren't considered potentially hazardous that when we went in in the greater than Ford ORG in time they came quite close to If you find a handful which we're not detected before or not considered being dangered before and we think they are potentially dangerous. It's very hard to see me wake. And they're going forward in time and asteroid that's gonna hit earth What the earth is really small And what space is really big and then you have to have very exact parameters to shoot an asteroid that's goes and hits exactly earth. And then Simon had the ingenious idea of not even trying to do that and just launching the asteroids from her surface Integrating backwards and time. It's very hard to make it hit So you need a lot of calculations which all end up in nothing. And the idea was then, like, well, let's not do that. This is basically what Nancy PERSON 's doing. Now, it's taking an asteroid, making multiple copies of them, shooting them all for it in time, calculating their orbi And I see what freshing sort of gets close to earth. They'll even hitting earth but getting close to earth. And then they call it the potential impacter. So you calculate the Charlotte GPE system forwards in time for let's say a 1000 years DATE and then you launch estroids from the surface as if they if you go forwards in time would fall on the surface You calculate him backwards to today And then you get your orbital parameters of today DATE 's asteroid to which you know will land on the planet. And those you can use as known infectors. In the solar system Can simulations and and AI GPE can those things fill in the gaps where perhaps telescopes and and other imaging tools can't. Absolutely. Since the observations get more complex. The physics gets more complex and if the physics will get more complex, the mathematics becomes more complex. And at some point, you can't solve your problems and analytically anymore. And then this is where the computer comes in. Now we have this train neural network. We have a way of calculating in a fraction of a seconds QUANTITY . Whether or not an estrogen is potentially dangerous or not and therefore deserves more attention Or or more time to spend on Really finding out if it is dangerous. When it comes to hunting asteroids time is critical. What we can do about a potentially hazardous object depends a great deal on what we know about it and how much time we have before the encounter We'd really like to find the one there decades away. Because the more time you have, the more options you have. And the less energy it takes to to move an object decide. It also means we might not have to resort to launching a nuclear warhead as an asteroid. Until recently, pretty much are only choice. That's an option of last Yes. We have lots of options available. You can just simply pop into the object and just nudge it out of the way. That's one CARDINAL possible and that's kind of in a way. This order the simplest thing to think about. Just nudging it off. It's packed a little bit with you know a massive object. A spacecraft would say it's kind of like bowling if you will. You know if you have A long time or a long stretch of of runway in the lane. Just a very small twist on the on the bowling ball. We'll make a big change in where it ultimately ends Another option it would be something where you take a very big big massive spacecraft and you park it next to the And you use the force of gravity as a towing rig. That takes longer though. And you need to be able to A pretty massive spacecraft and obviously depends a lot.
Object and you use the force of gravity as a towing rig. That takes longer though. And you need Send a pretty massive spacecraft and obviously depends a lot on how big the outstreet Other options start to get more and more complicated They range from painting one side of the object of white color and painting the other side dark and then letting the pressure of lights or preturb exorbitant. In a departure from the lab and computer simulations Nasa ORG has real plans to rehearse kinetic impact reflection In 2021 DATE the agency will launch dart the double asteroid redirection test mission which will intercept a 160 CARDINAL m asteroid in 2022 DATE Better to practice now before we have to deal with an actual threat. In the meantime, discovering asteroids is our best bet. Of scientists and amateur astronomers around the world make up an informal network that surveyed the heavens. But that may not be enough. NASA ORG wants more resources to map our solar system and better technology. We need to ramp up our networking sensors and also we need to just continue to strengthen our our network of international observers so that we can get follow up Cuz we find these objects when they're distributed all over the night sky. Once we get more observations, we get better data. We can make better predictions If you look at the big impacts we have had in the last let's say 20 years DATE or maybe 30 years DATE 50 years Most of them we haven't seen coming so the danger the real danger I think comes from the objects we don't know about and not from your pets we do know about This particular natural disaster like a lot of natural disasters in my climate change is a problem with the global comments. So the thing that we risk collectively is that it's sort of then becomes nobody's problem Nobody takes ownership over it. Asteroids are all over the sky. They just truly cross boundaries and borders with the seconds TIME notice. In the future maybe you watch a small satellites around the earth that are always going and looking out I mean i think it's something worth investing in Sorry existence at stake right The pandemic is affected everyone in different ways. Some past the time by baking. Some chose to binge watch netflix Or maybe you started a garden oasis in your backyard. Put my lettuces in But for millions CARDINAL of others Posting stocks that will Boom PERSON . They wanted to uproot the financial industry. Here's a stock that can change your life. Up and i buy it and i just watch it until it stops going up and then i sell it i have gained over three 1 million dollars MONEY . I don't think you can overstate the online communities for social media influence on financial markets. Inexperienced investors who discuss their plans on social media platform Reddit have shaken up the stock market in a big way. The revolutionary I took up a little bit.
The more these stocks go up, the more the big guys are getting creamed and losing billions of dollars MONEY . This is in a wealthy person's game anymore. Anyone can play it. I took up a little bit of a new hobby and I am interested in day DATE trading. It's an investor nowadays. You don't have to look a specific way. You don't have to wear a specific clothes. You High rise building in in downtown Manhattan GPE . The narrative of what's driving the market is no longer being held in secret offices in New York GPE in Boston Privilege ORG people talking to other privilege people it's right out in the open it's odd Twitter PERSON it's unread it Apps to discord channels and sub Reddits NORP to TikTok Finth ORG influencers one CARDINAL of the last holdouts in the world of disruption finance is next in line. Investing should be as you pick with us as shopping online. That's blood 10 CARDINAL of the CEO of Robin Hood PERSON the online brokerage app. Talking about how he wants his app to disrupt the world of stock trading like amazon disrupted the world of home shopping. And I think that speaks to exactly the mission that a platform like Rob PERSON and Hood has which is to democratize investing. Robin Hood PERSON was started in 2013 DATE by Vlad tenniv and by jubat in where else silicon valley as an alternative to the big brokerages but with one CARDINAL big difference Building the social network around finances for people they realize that there was a gap in the market and that free trading could become something that they could bring to the markets they could disrupt the industry While no feat trading is industry standard today DATE it was unheard of when it was first introduced. Find brokerage industry was really innovative when they came on the scene 10 15 years ago DATE but they kinda stopped innovating where you haven't seen those commissions come down beyond five CARDINAL or 6 or 7 dollars. Robin Hood PERSON think that by offering oh commission that they're gonna push people onto this platform And on top of no fee trading the customers Robin Hood PERSON was recording had been long overlooked in the world of Finance ORG so the typical customer of a Charles Schwab PERSON for example is putting a lot more money in that brokerage account than the typical customer at Robin Hood PERSON even today DATE with all of its popularity the median account sizes about $240 MONEY . Headache Single brokerage platform is how easy it is to use The design of the Robin Hood PERSON app really hasn't mind a user who might be coming at this absolutely cold The fonts are very well sized. The shapes, the colors, all of that is something that the founders of Robin Hood PERSON paid really close attention to. And by creating an interface that catered to a newer investor they were able to gather a pretty healthy group of customers And by 2019 DATE they had about 10 1 million customers. Those 10 1 million QUANTITY customers were a huge success story for Robin Hood PERSON but no one could have predicted its explosion after the arrival of COVID-19. Doors to the greatest extent 100% PERCENT of the non essential workforce must stay home. What we saw when the pandemic hit was the growth of Robin Hood PERSON users absolutely turbo charged. Then they saw the absolute surge in 2020 DATE in customer growth. And now by many accounts they have more than 20 1 million customers which is pretty extraordinary. So the next step for them is to figure out how to monetize those users and how even with their
How to monetize those users and how even with their small account sizes to get them to grow with the company and as it releases more Come along with them. Robin Hood PERSON would become one of the COVID economies breakout successes Robin Hood PERSON traders as their called became the short hand explanation for the frenzy of often speculative retail investing after the pandemic lockdowns Kids wake up in the morning they go on Robinhood ORG they're you know in the shower they check Robin Hood PERSON Kids are learning how to stock market works at 18 CARDINAL while they're at school you know checking their phones and between classes because notifications pop up telling them what their stocks are doing that day DATE . With these new tools millennials and gen Z are investing in the market in ways their parents could have never even dreamed of. Sort of key when we talk about the divide between older and younger generations is that the younger generation was exposed to so much more And tools at their disposal to do what they want in the market. The older generations, you never had the technology or the cost structure that you could play the markets like you can today. So, you were stuck with giving your money to a professional investor and paying them a fee. To do it Experience more so than anything else. You know if you could possibly shave 10 20 years DATE off your working life versus adding 5 years DATE I don't think you can fault people to that But Robin Hood PERSON is only part of the puzzle. Sure you can trade on it but without research information and data, you're just blindly throwing darts at different stocks and hoping to strike it rich. Wall St forever his always run on what we now called narratives you know people telling rumors to each other a bit around for 100 years DATE On Wall St information is its own currency Either you had it or you did it and the people who had it had a huge advantage. Didn't have a network effect it would be one person telling another person over the phone In fact, when I broke into this business in the 80s DATE , a lot of people used to complain that they weren't on the call list to get those ideas. Social media changed all of that. Fast forward to 2021 DATE that's being done on the internet now and that's being done on discord and Twitter PERSON and stock twitch in reddit and the impact is very similar but orders and orders is back to two CARDINAL larger. Social media has played a bigger partner lives it's also played a bigger and kind of more important role in how people find investing ideas And on these platforms. Those ideas spread on TikTok ORG . That TikTok ORG . People aren't just going to at for sea shanty videos The personal finance hashtag on TikTok ORG has garnered three CARDINAL . 5 billion CARDINAL views from its one 1 billion MONEY monthly DATE active users by comparison videos found under the cooking and health tips# have two. Six and two. 1 billion CARDINAL views respectively The trajectory of Robin Hood PERSON and TikTok ORG were What happened in the stock market this week DATE ? So the word of the week DATE is expectations. Absolutely essential that you guys understand.
We're What happened in the stock market this week DATE so the word of the week is expectations Absolutely essential that you guys understand the risks of shorting. Also known as Finfluencers ORG . Care about fashion they care about culture but it's also like there's this big A lot of them are younger investors who are To hone their skills taken right up Highwyn Kayla ORG are two CARDINAL of the more let's say professional ticktock influencers. I've been treating since high school and it was a really interesting way for me to fill out my decision making frameworks and to think about thinking and I think that the more that we can have people You brought finance the better that we're going to progress as a society I think it's a huge gap that our educational system Option for stock you can just gonna go up it's a call To think about like this. And yet the options video where I was like options are just like shopping. Rumor PERSON has it that this palace about to go in price. So if I come in tomorrow DATE can I still buy it? It's a price. And a ton QUANTITY of women. Just like attack that video and we're like will you explain things so much better than my boyfriend or Faster PERSON or like I could sit and listen to you all day and I was like the this is what I was looking for. But TikTok ORG 's algorithm does not reward common measured videos about responsible investing. It rewards this. Video for 30 seconds TIME and you'll be rich for the rest of your I try not to say the A word the ALGO word Tiktok lessons to it Hey algorithm does impact how you feel you know you do notice which videos do better versus which How do you catch some of the pension in less than 60 seconds TIME Nearly impossible to do that in 60 seconds TIME but the people who perfect it are the people that you're gonna watch and give us to stick around. And where people are sticking around read it and it's nearly countless subred it's about finance. And by far the biggest one of those is Wall St bets there's a lot of social media platforms out there but Reddit is like the social media platform for Finance places like Wall St Beds PERSON is where it all goes down started in January 2012 DATE it Long before Wall St bets adopted a four CARDINAL Chan like etiquette leading to their tagline like 410 CARDINAL found a bloomberg PERSON terminal. We had all these unexplained stockings and we would be grasping for a widestock XYZ jump ORG 20% PERCENT a day and you would look at Wall St Bats and you would see people there talking about buying options and that stock Sort PERSON of. Wow, we have to start paying attention to this. Some people on the platform really spend tons of time and others are just looking for entertainment and to have a little bit of fun. Effectively gambling or looking for an outlet Trying to make a little bit of money. Then, on top of all of that, there were stimulus checks, no clearly this money is going to people who need to use that to eat, to live, but there's a lot of people who use this money to invest in the stock market. And it's not just stock tips people quote unquote yolo their entire life savings are stimulus checks on a single stock They post what is called Dane and Los Porn GPE screen grabbing staggering hits and misses on stocks for the entire community to see I'm about to lose everything I want some of the people on Wall St that are novice investors. The community contains multitudes. In one CARDINAL respect what it did show us among these network groups is they are very sophisticated. They're not a bunch of ignorant people talking to other ignorant people. And this is where the pieces of the puzzle All come together to read havoc on Wall St for a solid week in early 2021 DATE . Pretty clear that the combination of more people having retail brokerage accounts and treating apps and more people being stuck at home looking for some kind of entertainment and some kind of community online came together in this very singular way.
And more people being stuck at home looking for some kind of entertainment and some kind of community online came together in this very singular way. What came together is GameStop. Let's go back to the beginnings of what happened with GameStop cup with years ago DATE A lot of people were talking about GameStop is being attractive value. Kitty ORG is a perfect example of that. Compelling asymmetric opportunities in the market today DATE . Really, I don't understand how you could disagree with that. At the same time, that this crowd was talking it up. The hedge fund institutional crowd didn't like this stock at all and it had the largest short interest of any stock in the New York Stock Exchange ORG going into late 2020 DATE . Sally PERSON is a bet that a stock price will fall and it's a fairly simple concept. An investor borrows a stock and then sells it the investor is betting on buying the stock back later for a lower price before returning it to the original owner pocketing the price difference Financial markets or they're at least looking for companies that aren't what they say they are and that can range anywhere from an outright fraud that some short sellers try to expose to just a company that's not worth as much Ambassadors think it is. Is if the stock price rises the short seller has to come up with the money to buy the stock back and the more rises the more it costs and that's what's called the short squeeze and the hedge fund Melvin Capital PERSON was on the wrong end of that squeeze Just from being caught in the short squeeze of his stock The disruption comes in. One CARDINAL of the most wild stories you're ever going to see GameStop shares absolutely going nuts in less than a year DATE the company stock has jumped from less than $three MONEY a share to almost $350 Cheers Rory MONEY and Kitty ORG has turned $50 thousand MONEY or so investment into some 14 1 million dollars QUANTITY . Investors all over social media use the free trading app Robinhood ORG to wreak havoc on Wall St they're actually piling on into some of these stocks to really hurt the professional short sellers Twitter PERSON , TikTok ORG , and Discord GPE to tell one another to keep buying and quote hold the line and not sell GameStop. People are getting cheerleaded for jumping in, buying at the highs, they're saying keep going. And it was working too until Thursday DATE morning TIME the trading app robin hood sent out this tweet in light of Volatility ORG . Angry. Screw CARDINAL us But what we learned is that when people organize online they have the ability to disrupt the market. It was a big sign that ivory walls of institution artist powerful is maybe the institutions left them to be eight. I don't know something about GameStop was the best use of billions of dollars MONEY but I think that as a signal to society it was pretty interesting The game stop saga was so impactful that both Vlad Teneb and Rory and Kitty ORG were called into testify before congress ORG to clarify each of their roles in the saga It's emerged from the congressional hearings is that they're interested in how retail brokerages make money and whether they're keeping the best interest of their customers in mind but it's pretty fuzzy as far as what they would actually do as a result.
As far as what they would actually do as a result. Frenzy around GameStop eventually subsided it didn't take long for retail investors to find other areas to invest their money take a look at Bitcoin going bananas over the weekend DATE big one forms of brand new all-time high it was after date stop started to drop that we saw Really go up to over 60 1000. That doesn't rally have to run. It's compelling to say that money shifted from one venue to the other. While correlation doesn't equal causation there's a chart out there showing an inverse correlation on meme stocks going down and cryptocurrencies going up Definitely an aspect where people are making money on stocks and then moving, you know, they're agnostic. They're not hedge funds. They can invest forever the hell they want. It's a classic sort Momentum ORG trades are going to wherever the winners are and they're willing to jump on and you know Ride it So whether it's meme stocks like GameStop meme coins like Dosh Coin or entirely new ways to invest in art like NFTs the new kind of retail investor is making its presence known over the next Hen GPE maybe 15 years DATE you're going to continue to see whether by choice or by force that baton go from older generations to younger generations I don't think any single app is is going to be the thing that disrupts I think people are the disruptors Ideas about what to invest in has become increasingly entwined with social media and as social media companies govern more and more of our lives the fact that now Is something that we might wanna understand better. What disruption I think means is technology comes in whether it's blogs to the newspapers or online retailing to brick and mortar they come in and they're in the same business but they just do it in such a gigantic car savings that it causes everybody to switch. Well, The risk that happens here is that it's so much cheaper to just manage your own money. We're not there yet. But cost and conveniences are moving in that direction. So I'd say Wall St you haven't been disrupted. Yeah. But you could be in the coming years DATE and at the final chapter on this story hasn't been written Meet Bloomberg's PERSON own David Nicholson PERSON . Now his happy place is out in the field On the open road But like the rest of the world lately he's been working from home a lot more than he's used to. COVID-19 has prompted a massive urban exodus as professionals of every ilk yearn for more space to live and work. As a result, rural areas have exploded and their poise to experience a resurgence as more and more families pack up and leave the big city to try out life in the burbs. But there's one CARDINAL problem with that Not all internet speeds are created equal. Anyone who might need to upload or download large files for a living may not wanna pack up and move to that cabin in the woods just yet. Now David's house is in a cabin but it is in the woods and inexplicably his internet is workable. My internet is okay. I pay a lot for it. It's around $140 MONEY a month. The download speed's great The upload speed is terrible which is really bad for my work cuz I have to upload these massive files
$ 140 MONEY a month. The download speed's great The upload speed is terrible which is really bad for my work cuz I have to upload these massive files but I'm definitely one of the more lucky ones in this community. Just a few miles QUANTITY down the road, my buddy has awful internet. Under two CARDINAL down Under point due of though it's it's often unusable. It's around one And other times it'll drop down to about. CARDINAL Two CARDINAL . Three. Able to do have internet at my house without having to go outside the Ways of acquiring internet. It's it's really frustrating. We're Hey A few miles away from downtown Anna just cuts off. Problem and the solutions are not there yet because getting high speed internet and rural areas on mass is something our providers may simply not be ready for If you're internet service doesn't have fast download and upload speeds then you don't have high speed harmony you have. Americans NORP on average pay about $70 MONEY a month for internet at home but in rural areas it could cost a lot more for a lot less service so the pricing for a fixed wireless provider here can be something between 80 and $150 About 25 QUANTITY megabits per second. However, gigabit service which is a 1000 megabytes QUANTITY per second ORDINAL and symmetrical is running at about 119 a month DATE or 130 CARDINAL a month. That's John Paul PERSON he co-owns spiral fiber an internet service provider here in Nevada County GPE California GPE and for the past 10 years DATE he's been trying to bring an affordable fiber optic network to town Started when you apply to be part of the pilot program for google ORG 's fiber service. End marching The internet these days DATE is crucial to be in the world to be a part of the world and to be connected to your community. Ultimately went with Kansas City GPE Missouri GPE which left paul on a mission to get funding to layout fibroctic networks for gigabit service Over the next several years DATE he would attend conferences and pitch venture capitalists and apply for grants to make his vision come to life One of the biggest roadblocks to build the infrastructure for the internet here in the United States GPE are the existing large providers. They have their landscaped out. They would prefer that nobody come in and compete against them 2013 DATE we applied for a grant we went down and met with the commissioners at the California GPE public utilities commission it was arguous process to get funded but we finally did against all odds we got a 16 1 million dollars MONEY grant and then we went out to seek venture capital Then in March of 2020 DATE the pandemic hit the world Everybody got locked down and everybody came home and everybody started using the internet and I remember seeing on one of the local fixed wireless providers websites they've said hey we know you're all staying home but please don't use too much video and please don't use too much band with an i thought that doesn't work The US GPE connectivity gap is far greater compared to countries that are considered its peers economically some developing nations actually have better internet than rural America GPE like in Kenya GPE which has a state of the art Optic network fed in from their coastline. The American NORP connectivity gap does largely affect rural areas that are either outside of service coverage or simply prohibitively expensive. This is Rebecca she and her family moved to Nevada County GPE just a couple miles QUANTITY down the road from David They took for granted that high speed internet would just exist in the area and it's not something they even bother to check on before buying their house. Turns out all they got was dial up. We wanted to move where we had a little more space, room for the kids to run around, you know, just be out in the mountains a little bit more. Having come from a bigger city area where WiFi PERSON is pretty readily available. We had it really consider In our purchasing of the house whether that would be an option or not. When school started and now that we are remote learning with our children and we're
Oh we had it really considered that In our purchasing of the house whether that would be an option or not. When school started and now that we are remote learning with our children and we're doing everything from home We didn't have the option to do that at our house. So, every day when school would start, we'd have to pack the kids up and we'd go to my in-laws home. They have a little cabin up in this area that does have WiFi PERSON already. Is the norm in rural America GPE ? According to data from the federal communications commission ORG , just four% of urban Americans NORP lack access to broadband internet. That's compared to almost 40% PERCENT of people who Enroll areas while that was the case there were also racial and socioeconomic device in terms of who had that access. In addition to that geographic difference, low income African American NORP students, Latino PERSON students, and first ORDINAL generation college students were more likely than others to have. Only one device at home that shared among For siblings and or lack access to that actual connection. For most American NORP towns there's also a lack of competition Internet prices up in large providers like AT and T in Comcast aren't incentivized to expand service to these rural communities. Simple, easy, awesome. So, in our area, we have a small imprint of Comcast but they're not gonna go out to the more rural areas. It's just not cost effective for them to do it as a large company. In order to weigh fiber cable, you're actually physically digging trenches into the ground and for internet service providers, they're Primarily focused on maximizing their profits and so the fewer customers you have, you know, in any square mile and the more fiber you have to weigh, that's just kind of harder to pencil out from a purely economic standpoint. ATandT released a statement on the matter expressing the need and desire for government assistance to fund fiber optic expansion To areas deemed unprofitable. Comcast released a similar statement encouraging more public private collaboration on this effort. Federal agencies do offer grants to help communities build broadband networks but many have argued that there's not enough flexibility on how to use these funds. The COVID-19 relief package passed by congress ORG in March DATE and signed by President Donald Trump PERSON awarded $ 43 MONEY . 3 million to 51 CARDINAL projects on the east coast LOC alone But it also stipulated that these projects needed to be up and running by December 30 DATE For contractors who plan projects months DATE and years DATE in advance it's a scramble to rearrange their schedules to meet that deadline. So what we've been asking the federal government to to consider is at least have as long as the projects are getting started knowing the projects are being put into place to expand both remote learning, working from home, and and the opportunities like that that are truly driven from COVID. We're moving as fast as we can regardless but hopefully they'll give us some more time. Talking to john paul PERSON it's clear that he believes broadband is something that can transform a community and should be considered a public good. What are the first ORDINAL communities to come on in the United States GPE with full on gigabit service was Chattanooga NORP Tennessee GPE Bigger city but there is city that was economically in a downturn. In the last 15 years DATE the city of Chattanooga NORP has turned around in an amazing way. It's a nexus for young people to move to. It's a place where technology happens. It's not just about logging on to Zoom PERSON . You know that to connect with your colleagues who might be in New York City GPE . Also your ability as a small business you know operating in the town of Nevada City GPE or wherever it may be to you know quickly upload your Swipe a customer's credit card There's just some really basic business functions and mechanics that I think people in big cities really take for granted and that are just gonna be a much bigger challenge for small business owners Areas ORG
Hey Historically the marginalized people you call them as untouchables are they have been kept away from the center of the knowledge once you are born into a cast it is very Call for you to grow beyond that you are stuck in that identity. Yeah education is the best Way of liberating them so that's how I chose to work in education sector. The kind of education that we are giving to the marginalized people is going to change not just the fate of these communities in Teleana GPE It is going to be the source of inspiration Been ORG a source of hope All the marginalized in this country. Greatest flight in India GPE is the system of cast. For generations of Indians NORP the social code known as the car system has defined how people earn a living and whom they marry. Although outlawed seven decades ago DATE cast remain a significant factor in deciding everything from family ties and cultural traditions to educational and economic opportunities. Darling people who are on the lowest run of the car system Almost one fifth CARDINAL of India GPE 's population of one. 3 billion MONEY . Not able to afford the high tuition of private schools many are forced to attend government funded institutions which in the past have suffered from poor infrastructure lower education standards and high student to teacher ratios But doctor Pravien Kumar PERSON is trying to change that. Currently working as Head off the Langana ORG social welfare residential schools. So, totally above 400 CARDINAL schools I managed. These are all residential schools. For other students who are historically marginalized but talent Than poor. Hey Oh of them 60% PERCENT of girls and then 40% PERCENT above Girls are more marginalized among the marginalist they voices are always suppressed My approach to improve the conditions in the schools has been put your eyes and ears on the ground always talk to the Talk to the teachers, talk to the students, you know Stay the schools and then understand their problems they challenges both in classrooms and then the corridors and the domes then go to the dining halls and see what kind of food they're eating and then go to their homes and then what kind of What kind of challenges parents have What are the important changes that I brought in after i took over was to Delete GPE the transformation of mother turn to English LANGUAGE medium because english LANGUAGE medium As I said English LANGUAGE is the language of human situation And language of that connects you to the whole body of knowledge in the world. So we had to train a lot of teachers. Hey Identity is extremely important.
Hey how are you? Hi Identity is extremely important There is there is a scientific evidence to prove that you know you are since I've identity is extremely ah crucial to your growth as a successful In your life You for you accepting her identity which is very humiliating which reminds you of very painful past I think that identity will not help you to grow another time not saying that you should forget your past I'm not saying that but that should not be ah the bubble in which you must live always Hey Is an alternative identity S stands for state Stands for welfare. Aero. You and an arrow is swearo. So the idea is your dreams have to be sky bomb So, that is what we are trying to achieve by changing the identities like, you know, we say, I'm a swearer. And I aim to be a doctor. I am a swearer. I am to the top notch engineer. I am a swear To be a top bureaucrat of this country. I miss where I want to be a very good actor or you know, musician in this in a world. So, these are the positive images that are associate with identity. Just to give an example to you. See in 2012 DATE Are you not institution we used to produce about six CARDINAL doctors per year. But because of our you know this self celebrating ideology of seruism. We have this year DATE we have produced about 189 CARDINAL This is phenomenal for any tourist of the food you know how difficult it is to get into a medical colleges in this country so but today ah because of this ideology the I've been able to achieve this you know Understand PERSON ? Pujita PERSON is has been a form laborator. My parents, the angels are agriculture libraries and then this girl used to sell vegetables but thanks to the residential education institutions. She came to go to the D campus and then she toiled very hard For 1 year DATE despite you know many problems. And today DATE I'm so happy to share with you that you know she is she has joined One CARDINAL of the prestigious medical colleges in the state of Calendana ORG . And future. She hopes to be a gynecologist So, this is the journey. Our children are hoping for us. Similarly the mountain is experiencing. I mount every six CARDINAL person we were we are very fortunate enough to please History of this world. On the peak of Monteast How did this happen it's all because of an idea that helps you to liberate yourself. Lot of extra curricular activities and most of them got institution Now so for example music. Similarly the games we have so many is coaching academy her boxing academy we have a handball academy so we have you know covered traditional Indian NORP sport we have goal we have entered is the gold fall so Generally played by so called rich people but today DATE you import us of the poor people also are being trained in golf in our schools. Intention has been to give all 360ยฐ you know a type of opportunities to the students so that you know wherever is interested in whatever activity they can go and then do it Break the barriers Break PERSON the fence at least mentally. Because the poor people have been programmed to be Program to be Subjugate. Program to be On the markets always To feel inferior. We want to
Subjugate Program ORG to be On the markets always To feel inferior. We wanted to change on that there are certain games which are exclusive to rich people There are certain languages which are exclusive to middle class and upper middle class in this country. To put it in one word The soul aim of reducing all these cocoa blood activities he's to break the Stereotypes PERSON which are recklessly built on these people. Best stereotypes doctor Kumar PERSON knows all too well Born a dallat his grandparents were laborous and access to the village well was restricted. Doctor Kumar PERSON credits his parents belief in the power of education with helping him realize his aspirations. He went on to join the Indian NORP police service attended Harvard University ORG and then began pursuing educational reforms back home. I attribute whatever I am today it's to my mother primarily they educated me the village although there were no good schools so then I stayed in a social welfare hostel Hostiles PERSON which are managed by government for the poorest of the poor kids. I passed with you know reasonably good grades than I went to university and then I faced worst form of In the university is like and there were you know in those days I'm talking about so the bathrooms and the you know toilets were Exclusive element for Shelka GPE and she will try We used to fight this convention on one hand and then again you know try to excel in academics you Oh that's how I came to education because I deeply believe that Education ORG is the only important weapon that can really you know place the poorest of the poor people From from a very victimhood orbit to prosperous habit. Think of being future this is going to be a game changer for the marginalized this country If you look at a thermal image of a city and then compare that to a map of vegetation you'll find that weather is greenery the temperature is lower. That's because things like asphalt concrete and shingled roofs absorb more heat from the sun than trees This is the urban heat island effect and it accounts for higher temperatures in cities often by several degrees QUANTITY compared with their surroundings It's becoming a huge risk to human health as growing up in populations exacerbate the heating effects of climate change. Heatwaves kill more people than any other extreme weather event more than tornadoes hurricanes and even floods. That's why Urban Heat Island LOC mitigation strategies are being studied in Singapore GPE by a group of researchers. The government back project called Cooling Singapore PRODUCT is now in the process of combining everything they've learned to create a digital tool that can help cities all over the world Starting would Singapore GPE In Singapore GPE close to the equator temperatures regularly rise above 32 CARDINAL ยฐC or 90 CARDINAL ยฐF And the city structures only make it worse. And that is also the keys for Singapore GPE which is
2 CARDINAL ยฐC or 90 CARDINAL ยฐF And the city structures only make it worse. And that is also the keys for Singapore GPE which is basically a concrete jungle, more urbanized, more developed city. Even in Singapore GPE what you have is a situation whereby that's a temperature difference of 7 CARDINAL ยฐC between the more urban eyes and the more rural areas The government has taken drastic steps to keep temperatures down. This is Gardens by the Bay an award winning park An inside this greenhouse is a pleasant 24 CARDINAL ยฐ. That's because the dome along with two dozen CARDINAL nearby towers full of thousands CARDINAL of people is chilled by what's probably the world's largest underground district cooling system It uses a large central plant that cause water and then pipes it into banks residential towers and exhibition center shopping malls and the cities iconic marina bay sounds hotel in casino complex So one of the biggest pugs of using this system for the buildings is that they can save 40% PERCENT In terms of electricity usage Compare to your traditional air conditioners. I'm with Singapore GPE relying on natural gas for most of its power. This new system means emission savings equivalent to removing 10 1000 CARDINAL cars from the city's roads. That has big implications for the rest of the world if things stay as they are more than a third CARDINAL of the world's electricity couldn't end up being used to call buildings and vehicles by 2050 DATE As the world gets hotter gets warmer there is a greater need for air conditioning and as well as refrigerators for instance and the more people are buying these household appliances the more energy usage they they use and they release heat more and better Accessive bits It's a vicious circle And so since 2017 DATE research is at cooling Singapore GPE have been identified design solutions that reduce our need for so much cool air in the first ORDINAL place. One CARDINAL thing many cities have in common and as importance of education Very important measure to mitigate the heat because of the shading effect of course and deep psychological effects of the vegetation and also because of the possible Operative Effect ORG of the vegetation. Can be of course on the ground floor Of trees and troughs and you can walk under them. This is the so called canopy layer that the vegetation forms above us. But vegetation can also go up to facades of buildings. And it can go to the roof of the buildings. Luckily Singapore GPE has been striving for the garden city feel for quite some time. It was a vision initially introduced by them prime minister Lee Quan Yu PERSON in 1967 DATE to make life more pleasant for people and today Singapore GPE is one CARDINAL of the world's greenest cities in terms of urban vegetation. Campun admiralty the community center that contains health facilities and social spaces now provides more green space than the plot of land it was originally built on It's topped by a roofscape of staggered terraces covered in local plants which functions as a community park. And a village green in the center that contains farm plots for residents to tend to. Park royal on Pickering was designed as a hotel in a garden that doubled the green growing potential of its site. There's now 15 1000 CARDINAL m of sky gardens reflecting pools waterfalls planter terraces and green walls. And the government has big plans as well. Singapore GPE actually has a plan to plan one 1 million QUANTITY trees and add more green spaces over the next 10 years DATE . It is actually a mix of one CARDINAL thing to reduce the urban heat island effect. But on the other hand is also to get the people to be more connected to nature. But it's not enough The city state has still been warming twice as quickly as the world average of the
But it's not enough. The city state has still been warming twice as quickly as the world average over the past six decades DATE . That's why calling Singapore GPE has developed a catalogue of other potential heat mitigation measures. When you try to mitigate your heat and effect in a city or in any building in a village as well the first ORDINAL place to start is by shading The windows you have to keep Areas clear so that the wind can move through it water of a certain depth can act as a very good thermal buffer If you have to construct heavy buildings such as high rises, at least you can make the surface, the facade Less heavy and you can protect it from direct sun penetration you have to make sure that no combustion engines will be in the city in the middle and the medium to long term range so ideally the electricity production is outside of the And you bring just a clean City into the city. You cannot at least minimize the use of energy in the city and you can start to slowly convert the roofs, the facades of the city into Areas for renewable energy In Singapore GPE unfortunately this is a limited option but in the long run it could produce up to 2025 percent PERCENT of the energy of the electricity needed in Singapore GPE if all the roofs and the areas in the buildings on the buildings on the facades would be used to do that With so many different ideas cooling Singapore GPE is also designing a virtual model of the city to test them out It's called a digital urban climate twin or duct that will calculate how each element of the city's design will impact the urban heat island effect. That means we model not only the geometry of the buildings digitally but also the model the transportation The insulation, the temperature, the radiation coming from the sun. The weather, the local weather, the local climate, the even very very microclimate of the city The water The movement of people in the city We can invent scenarios. We can design scenarios, test them before we actually built them and if they test very well and be assured that they will function, then, we can start to build them Put them into reality. Singapore GPE will be using this new tool to figure out which actions it should take next. And the model can be applied to any city whether it needs to keep heat out or keep heat in which will ultimately save energy, slow climate change, and improve our quality of life. So this is something that Singapore GPE will be able to export maybe even together With it's city development systems that it already has Singapore GPE is one CARDINAL of the very few cities in the world that really With a very well established redesign and design approach through its agencies and the combination of its agencies. It has achieved a lot in the past. If it keeps Going to scientific path and the combination The In the city already we think that it will be a very comfortable and very livable city in the future even more than today
Times ORG are tough. Jobs are scarce. It's risky to be outside and around others. Seems like there's very few ways to make extra money during a pandemic. So I guess I'll just hunker down and binge social media until this all blows over. Wait Don't these people make money? How do these people make money? Streamers, YouTubers ORG , Twitch stars How do they make money? Is it a lot? Is it a lot of work? I know I gotta ask somebody in the biz and i got just the guy Austin John PERSON plays. This is your full-time job now, right? As of November of last year DATE , yes. This was always just kinda like a side thing. Like, any money that I made from My videos and whenever else I never touch that cuz I didn't really think of that as being like real money and then it started coming in more and more and then it would like I hit my first day that I broke a grand and I was like This is actually gonna be money How did the youtube channel come to be when the game Pokemon sun ORG and moon came out for the threeDS there was like things that I learned about the game and then I I wanted to just share that information with people and at the time I didn't have any way to capture a screen or anything so I found like generic footage and I kinda put Together PERSON with so much editing and that video got six CARDINAL views. And then 2 days later DATE I made another one. And that one CARDINAL got 12 CARDINAL views and then I just started pumping out more and more content and people were like, this guy knows what he's talking about. It really just started building on top of itself and then it was like My channel really focuses on tips and tricks so I play a straight 18 hours TIME and I'll finish the game or get to about the 40 hour TIME mark and then I'll make my first video While I'm going through a giant notepad and just scribbles everywhere and I make these notes of like the things that stumped me so I know the things that may stump other people. What do you need to think about if you're Or YouTube ORG channel. One CARDINAL , you need to do something that you're passionate about. Not that you like, not that you think you're gonna make money on something you're passionate about. Is other thing is something that other people are passionate about. It holds a special place to them. And third ORDINAL is it needs to be something that people are gonna seek out information on. In order to enter into the marketplace you either need to be better than everyone else. You either need to be faster than everyone else or you need to be more accessible than everyone else. And you can't be more accessible cuz it's already on the platform granted if you understand how the algorithm works which is very similar to Google Analytics then yeah you can have a little bit of a head start but if you're not doing it faster and if you're not doing it better than everyone Why we shouldn't wanna watch our channel So, my income as a YouTuber ORG , kinda breaks down to three CARDINAL different ways. One CARDINAL , which is the bulk of it which is add revenue. Whenever you go and you watch a video and then there's an ad and you wait 5 seconds TIME and hit the bottom right corner and then you go on to the next video or nonscapable ad or The video starts immediately get the little banner at the bottom or If you scroll down from the video the first thing that shows there is an ad those are the four CARDINAL different types of ads that can appear on every single YouTube ORG video All of them pay a certain amount. It varies on lots of things like the country A person who posted the country of the person who watches it the time of year DATE where you are in the quarter DATE if there's anything going on with A reduction in ad revenue like great example COVID-19 companies weren't as spending as much on advertising so because of that CPM ORG went down CPM State ORG .
Example COVID-19 We're just spending as much unadvertising so because of that CPM ORG went down CPM ORG stands for a click per 1000 using the Roman numeral for 1000 that means that for every 1000 CARDINAL views you get a certain amount of money now on low ads when I first started off my CPM ORG was ยข30 GPE . So every 1000 views I made ยข30. But then once I sign MCN and I started making more quality content and more engaging content some of my better videos and sermon times of the year I can see CPMs as high as 12 to 14 dollars MONEY And there's a big fluctuation between you know if I post a video when there's no ads being spent like January DATE and February DATE that's a reason I love your favorite YouTubers ORG and also TV shows don't post new videos in that time of year DATE cuz add rates are down why are they gonna make content that Said PERSON you're recording and you're bulking up for when ad revenue is higher. The second ORDINAL way that a YouTuber ORG makes income is Crowdfunding things like that. When I first started off Patreon was really the only option but then they started rolling out supporters and members for YouTube ORG channels. So, whenever I have a live stream, you can click a button and then you could become a member and then you get Special icons text your name I believe they're called batches or on any video you can hit the joint button and that helps support the channel And then the third ORDINAL aspect to that would be merch. And for me, my merch has been somewhat basic. In fact, I'm wearing one of my T-shirts from last year DATE right now. You have to endure the times that your first ORDINAL video gets six CARDINAL views. Then you post it on Reddit And they say shut up and then an automod bands you you have to go through that because until you go through that You discover why you're doing it. You're not doing it for other people. You're doing it for yourself. If you're not loving what you do, then it's not worth it. Hi So make a channel about something that I'm passionate about. I guess I can make the channel about that. Now how do I grow an audience How do I get popular? It's all about diversification, right? You have to have a massive Twitter PRODUCT following. You have to have a massive Instagram ORG following. You have to have a massive YouTube ORG following of course you have to be on Twitter PERSON which is the key platform book. Basically anyway you can get in front of your audience you can engage with your audience it is going to drive those clicks with ultimately drives the advertiser revenue that you get back from all of these platforms Playing video games and talking in a funny manner over them. They're not just people who are good at games. They're actually people who are good at online, engagement, online entertainment, first ORDINAL and foremost. Anything you wear can and will be used against you in the quarter DATE fashion. It's either Very talented at the game the best player in the game is generally going to draw a crowd cuz people like watching people who are very good on the other hand there either very very good or funny Charismatic, whatever it is on that side. Oh, no. You know becomes more of a show where they talk about other things outside of the gaming world and gaming becomes really just a backdrop and an excuse to engage with that audience. Weird like Ronald McDonald PERSON looks straight to VHS ORG movies remember those? I'm chatty I would kind of you know when boring things were happening the game I would ramble on about you know movies I'd watched or book side red on you know or conversations I'd had and stuff like that and so I think being personable was a big part of that. It's not just getting on and playing games. It's getting on and being an entertainer. You are putting on a show. Alright. Now, let me go ahead and grab the samurai sword that every gym has. Okay he's dead A larger audience and and to have that audience
Alright now let me go ahead and grab the samurai sword that every gym has. Okay he's dead. A larger audience and and to have that audience I think stay with you. You have to bring something extra. You know you have to find your niche. You have to find what works and what connects with the audience and I'm all make some laugh of what makes them keep coming back. Alright thrown a hanging bishop have everybody in suspense for a moment I think the real most important thing is is to just get used to being on camera like in any sort of performance thing is get used to talking on camera you know I my first ORDINAL few videos were terrible but because I sat down and did 6 to 8 hours TIME a day I just got used to talking and I got over that uncomfortable hump. Go into Twitch NORP purely with the expectation that you're going to make money, make a job out of it, have all this growth, and it's gonna be great. You're probably gonna burn out prior to getting to that point because there's very little payoff for a long time, right? Like, Years DATE generally before you really start to see a payoff and so you know those first ORDINAL few times you're streaming nobody is there one person shows up every 30 minutes TIME says hi maybe and leaves right like Very Discouraging I think for a lot of people and so you have to be there just loving it you have to love talking to yourself when nobody is around you have to love just the game that you're playing all of that stuff because it takes a while and I think the a majority of people burn out prior to To the like profitable point of it And there you have it. My very own YouTube ORG , Twitch ORG , Discord GPE , and streaming channels already to go live. It's available social media ecosystem just on the verge of thriving. So don't forget to smash like and subscribe and visit my Patreon for perks. Also, go to my merch page and one CARDINAL last thing, Live stream shopping one of the hottest trends in China GPE Every night tens of millions CARDINAL of people watch live shows hosted by influencers like Via and by the products they recommend on e-commerce and social apps like Taobo GPE and the ink the sister app of TikTok Julie WORK_OF_ART and the guys have a call with a function. Not about, you know, only shopping. It's about the experience. It's about having fun. You gotta see threeD, you gotta see in some kind of action. It's almost like a theater act. The internet craze has taken over China GPE by the end of 2020 DATE . The country had almost 400 1 million QUANTITY live stream shopping users China GPE 's live stream e-commerce market has also grown dramatically With an estimated value of 161 1 billion dollars MONEY and 2020 DATE . It's becoming popular outside China GPE as well So is live streaming the future of shopping. Live streaming is not a new thing in China GPE it started in
Live streaming is not a new thing. In China GPE it started in 2015 DATE with the roll out of fourG. First used for entertainment and socializing. Many live streamers perform for their followers or chatted to them making money by receiving virtual currency and gifts. In the west live streaming is mainly the going of avid gamers It's broken into e-commerce China GPE you actually has a very big e-commerce empire so it uses these super apps what we call that you have payment you have search of information you have recommendation system and you have huge amount of goods available on the platform and as well as a lot of consumers With this advantage they merge these features of live streaming to make the influences actually so good here is a perfect choice nice neutrals beautiful prints nothing overwhelming and the warmth and comfort of flannel this is Traditional TV shows a one CARDINAL way direction whereby a course introduces a product demonstrate so the things and say call this number or something Live stream shopping is live. Very, very big difference. They call us different psychology and live stream shopping is a very entertaining way of actually engaging someone else. When you shop actually this live streaming video will continue. It will minimize into a corner and you can like buy the items and pay all on the same app. After that the live streaming scream will just enlarge by itself and the promoter will come back to screen. So it's like very convenient How about one of China GPE 's biggest e-commerce platforms on tech giant Alabama GPE added a live streaming function in early 2016 DATE ? In the following years DATE , other e-commerce and social platforms like JD PERSON and Doeing GPE also integrated this feature. Hey Palisia GPE Over 70 1 billion dollars MONEY worth of goods was sold by a live stream on Taupo in the years through March 2021 DATE . Surveys show that over 60% PERCENT of live stream uses in China GPE will work in shopping shows and over 65% PERCENT of them shopped at least once via live stream 2020 DATE live stream shopping got a huge boost during the pandemic Millions CARDINAL of people were in lockdown and many retailers were pushed online. People, you know, during the lockdown, felt like there's a need for more social interactions This live platform creates an interesting kind of environment that these people discuss that I'm actually interacting with you In a live stream shopping brings in a lot more variety of things that people could buy and satisfy you know that sense of control especially during the Add the heart of this craze are the top influencers who have tens of millions MONEY of followers and support products worth millions of dollars MONEY every night. The afternoon TIME user stop power to get barkings from retailers Booster own south and influence. So everything about China GPE 's live streaming you have to know the king and queen of the influences the queen of live streaming via she is actually having the biggest viewership and the biggest Sales volume for a long time on top of our platform. She can sell everything from like Gucci PERSON sunglasses, lipsticks, homes, and cars. One CARDINAL time she offered her followers to go on a Tesla ride with her and she even for once. So, they rock you lunch in her live streaming room 40 1 million grand QUANTITY . The king More whitely known as lipsticks brother. He used to be a cosmetic sales before he turned into live streaming e-commerce and he knows a lot about the cosmetics. So, he's the one that we will actually put the lipsticks on himself when he's
Before he turned into live streaming e-commerce and he knows a lot about the cosmetics. So, he's the one that we will actually put the lipsticks on himself when he's on the show. Top live streamers like Via and Lijati GPE have become celebrities in China GPE and can earn millions of dollars MONEY a year Although not everyone can be as popular mid ranking live streamers like Tiffany Stewart PERSON and a good income through sales commissions. Show me an item Now A lot of successful livestreamers are generally very good at communication They're very good at articulating very simply what a product does what a product doesn't do in order for them to sell they need to be trustworthy and a peer trustworthy and they need to you know show in some ways they get authentic right so for able to articulate that quite a bit through the body language through what they say for example Ichachi Old. Guinness record for like the most lipstick applications to models in a 30 seconds TIME So if you're able to create a lot of bus you're gonna interesting things that you do people who may not wanna buy lipsticks but also streaming just to watch what he does and then from there you might get hooked Live streamers also use cell techniques such as limited time or supply. Scarcity can often encourage viewers to buy. The platform in the South LOC creates an enhancer some of these things but you see it live suddenly because social proof has taken over meaning that hey other people are interested other people are joining it has the people won the same product Oh I want this too. What happens then? It makes the whole product even more scarf. But it's not just influencers. Local farmers luxury brands even mutual funds have also started their own live stream shows. Working with very top tier live streamers can be it's not necessary that the benefits will end up with a brand so we'll see company executives opening their own shows and we see like PNG ORG have their own Room which runs shows everyday as well. We also have like local governors in like small towns to sell their agricultural products. So, the live streaming is definitely transformed the way the owners can think about how to reach their consumers and enables a lot of players to actually sell The live stream shopping is going global merchants in Southeast Asia LOC have embraced this trend. And in the west amazon has upgraded its live streaming function Interactive features like chat rooms. Companies including Google and Facebook also developing an investing in technologies to integrate video and e-commerce. If you do get the numbers You know that they can sell and you know that you know they can January DATE revenue.
You know that you know they can January DATE revenue Are they able to sustain it over a long period of time? It depends on how you know very they are at changing some of the things that they do. But you can't expect consumers 1 day DATE turn into virtual shopping for good. There will be the nature of us that crave to go into the store to touch the goods and actually wear it See how it looks like and walk around that with our friends and those things wouldn't be replaceable with live streaming. You could imagine Oceans NORP are actually the largest battery We store in huge amounts of energy in the oceans. The way of motion can be very deep. It can extend down several 100 metres QUANTITY . I want you to get to the near shore. About 50 CARDINAL m the whole water column is moving backwards and forwards. As we search for ways to reduce our lands on fossil fuels some are looking to a largely untapped potential source of renewable energy. In theory waves of the coast of the United States GPE alone could generate over two 1 trillion kilowatt QUANTITY hours TIME of electricity a year. Enough to power more than Of the country. Intensifying subside not as quickly as the wind and that means that it can produce a smoother power generation curve. One CARDINAL of the potential advances of wave energy is that it could act as a complimentary source of power. Compared to other renewables on the grid if it was Scaled up to commercial scale. For decades DATE engineers have been trying to convert wave energy into electricity. But a host of technological and financial challenges have complicated their efforts. In the years DATE from around 2006 to 2015 DATE there were Bankruptcies in the sector and this was largely because of a lack of kind of continuous Proven projects out at sea with reliable electricity. She's generation. Since then companies have been trying to develop the technology but a steadier pace and with a smaller cash burn. But the same questions remain. 10 CARDINAL companies developed devices and technologies that actually work East LOC wave energy just a novelty or something that can become a major renewable energy source. The sea is about challenging environment within which to operate a car projects so see what is and conditions are very rough so this means that power projects don't have a very long lifetime and it increases operating and maintenance costs. Partly because of that many early wave energy projects hit rough waters such as the palamis wave energy convert it in portugal GPE and the isla limpit project Scotland GPE . Hasn't stopped others from trying. Companies are focused on testing projects out to see proving that your ability trying to raise And bring down cost the sector hasn't really converged around one CARDINAL single technology design and Kind of undersized about which design works best.
Technology design and companies are kind of underside about which design works best. Finland GPE based AW energy is a veteran in the sector. The first ORDINAL proof of concept of the company's device was made in the 90s DATE after divernovasari PERSON observe the strong back and forth movement of a hatch cover in a shipwreck in the vol C the waves are generated far from the coastline so the wind blows on the on the surface of the water In the water particles to rotate And that rotation extends deep down below the surface and and the waves can be very long. It can be several 100 metres QUANTITY long. Unless they come into the near shore this rotational energy Turns into an elliptical energy and eventually back and forth that you probably noticed if you've been swimming on the seashore in large waves your pulled in and out that's the energy that we're expecting but there's a sweet spot where we deploy so around 10 to 15 m of water depth that's where there's still strong wave energy coming in after Research prototyping and testing the company is deployed wave roller. A 350 kilowatt QUANTITY device in the waters of Portugal Wave ORG roller has an 18 CARDINAL m wide and 10 CARDINAL m high steel panel fix to the sea bed via floatable foundation The panel moves back and forth with the waves capturing the energy. Tinder Of 15 m. So it's it's protected from the extreme waves. We celebrate electricity by capturing the Movement with hydraulic circuitry in a machine room underneath the surface That hydraulic energy we turn to electricity with hydrolycumulated and hydrolic motors and also generator. The wave roller has survived large waves at sea for over a year and delivered electricity via an underwater cable to the grid in Portugal GPE meanwhile the company has won a two CARDINAL . โ‚ฌ 5000000 MONEY grant to work on an upgraded version of the wave roller aiming to increase the electric Generation LOC capacity to one megawatt QUANTITY the upscale device would have a bigger panel two CARDINAL power take off units and improved software to control the energy production Algorithm LOC that kind of tells us what kind of waves are coming in throughout device That gives us a few seconds TIME to prepare For capturing more energy Difference in daddy's significant Our future plans are to Around the world. So I'm hoping we can be On on delivering technology to projects in Asia LOC And and also in in the American NORP continent as well. Is really company eco wave power is taking a different approach to capturing the power of the ocean For the company's founder in a brotherman developing new sources of renewable energy is a personal mission. I was born in Ukraine GPE in 1986 DATE And 2 weeks DATE after I was born that you're noble nuclear reactor exploded Causing the largest in history no clear disaster I was one of the babies that got hurt from the negative effects of such explosion i had the respiratory arrest and a clinical death. Luckily, my mother, a nurse, Save my life. I got a second ORDINAL chance in life and decided to do something good with it. Growing up in a wanted to be a politician to positively change the world. After working as a translator at a renewable energy company she decided to change parts. Solar and wind energy were fully commercialized there were a lot of amazing technologies implemented everywhere I saw that wave energy although it's an immense source of electricity The biggest companies in the world are trying to develop wave energy with no success And there was kind of a race go
Any men's source of electricity the biggest companies in the world are trying to develop wave energy with no success and there was kind of a race going on in the world of who is the company that is going to develop a viable wave energy First ORDINAL . In 2011 DATE the then 24 year old DATE in a co founded eco wave power Instead of installing devices offshore the company's devices are attached to existing brake waters jetties and peers Our technology is very cost efficient especially in comparison to the offshore technologies because we don't need any ships, divers, underwater mouring, or cables. We install an existent man made structures and all our expensive equipment, the generator, the hydraulic conversion unit, the automation is located online just A regular power station. Since 2014 DATE until 2020 DATE . Here you can see how the technology works. Into land located accumulators Hydro motor ORG which is turning the generators. Is controlled by smart automation system which you can see right here Above the water level and keeps them in the upward position until the storm passes. The company has been operating a 100 kilowatt QUANTITY grid connected device in Gibralta GPE since 2016 DATE . Which is enough to power 100 CARDINAL households. Currently anyone her team are working on another 100 kilowatt QUANTITY project at the Porter Jaffer PERSON in Televive The project will be also the first ORDINAL time in the history of Israel that wave energy will officially connect to the electrical grid And our goal going forward is to expand it to all suitable break waters in the city of Television and to supply significant part of the city's electricity needs. Today DATE engineers and entrepreneurs are still trying to crack wave energy. Globally only a few 100 CARDINAL kilots of wave energy are deployed compared with gigawatts of offshore wind. But the field has come a long way in recent years DATE and with the right engineering solutions this new power source could eventually become competitive with more mature renewables like solar and wind. I would More confidence in the success wave energy companies today DATE as opposed to like 20 years ago DATE but in the next few years DATE or maybe the next couple of decades DATE it it will be more likely to be used in remote locations like islands that are otherwise dependent on expensive diesel power or out at On gasting commissioning rigs or for powering underwater autonomous vehicles. So definitely wave energy can compete with other renewable energy sources but I personally believe that this is not a competition. In order to have a 100% PERCENT renewable energy friendly world we need all renewable energy sources to work together
Hey Number four CARDINAL . Hey portal Hey Can you please tell me? Please wait You know, I've covered a lot of companies. I've covered a lot of Maki Valleyan ORG companies You know, people play rough. I don't think I've ever seen anything on the scale that Nissan ORG . One CARDINAL of the most dramatic elements was Revender Possi's PERSON home being raided by court officials in Yokohama GPE . So Rob PERSON 's journey into the the darkest recess is The Japanese NORP corporate world started when he was the general council the highest corporate lawyer position in the company In the past few minutes TIME new song has revealed that it's chairman has been arrested after allegations of serious misconduct. He was tasked with investigating carlos go And hit he was told Internal investigation and get to the heart of the manner. And then along the way he started to notice serious conflicts of interest He is one CARDINAL of the few people who knows an extreme amount of detail regarding the alleged crimes by Pearl Scone PERSON and he's now ready to tell his own story on the record about some of the events that happened My name's Ravinda Paci FAC I'm the former global general council of Nissan Motoco Limited ORG and you could say yes I had a front row seat in terms of what was going on When Carl PERSON is going save Nissan ORG years ago he was depicted in Japanese NORP comic books as this hero and and now maybe we'll see comic books where he's the villain. In corporate Japan GPE a Nissan ORG was quite an unusual company It was led for two decades DATE by a non-Japanese NORP executive Will Carlos Gone PERSON was a hero in the Japan Global ORG business celebrity in Japan GPE in worldwide it was definitely Carlo Scone PERSON . In a country with few foreigners at the top he stood out. Into one CARDINAL of the most competitive in the world. He started thinking about legacy place and one of them was to really tighten the alliance between renew and Japan GPE And unbe notes to him there was a contingent of senior Nissan ORG executives that were really felt threatened by that move they really thought that they would lose complete control of the the the car company and even in the government there was probably a little bit of About a national champion In the auto industry falling under full blown foreign control Carlos Gone PERSON was an auto industry.
Hey about a national champion in the auto industry following under full blown foreign control. Was an auto industry leader respected by many in Japan GPE . Now, he's in jail. Of Carlos Gone PERSON came completely out of the blue. This was in November of 2018 DATE . He was coming to Japan GPE on Nissan ORG 's corporate jet for a regular executive meeting and he was met on the tarmac by Japanese NORP authorities who whistom away to jail and charge With financial misconduct crimes So what happened was it a power struggle ensued inside the company Somewhere along the way it was criminalized By that I mean that there were allegations leveled at Carlos Gone PERSON about the way he reported his pay to Japanese NORP authorities the way he handled money inside the company that in other contacts might have been a board action might have been held handled Internally Of PERSON executives at Nissan ORG decided to take this this difference and take it over to the Tokyo GPE prosecutors office and that unleashed a chain of events that would shake the entire auto industry So after Carlos Gohen PERSON was arrested a Nissan ORG launched an internal investigation The events that led up to his arrest. Survive Parcy with task Investigating carlos gone and he he was told get to the heart of the matter find out what Carlo Stone PERSON did wrong and bring it to our shareholders Yeah it's really complicated because you had Things coming out of the weeds. Investigation has has started and we become Aware ORG of matters in terms of conflicts actions by certain individuals That cause some concern Things might not Be what they seem. So, in our story, we really took a close look at horinata in his role in Carlos Gones PERSON downfall. Hurry Nardo PERSON is one of the most fascinating figures Nissan ORG . He's also a lawyer. He's originally Malaysian NORP . And he had a meteoric rise through the company Became ORG very very close to Carlo Scone PERSON and other top figures. He had a front row seat and all the major strategic deliberations at the at the company. And when he discovered that Carlos Gone PERSON as his final legacy play was going to tighten the relationship between Rano LOC and Nissan ORG . He made a decision to go against Carlos Scott PERSON and he became one of the key figures that decided At Carlos Gonehead PERSON to go. Harry Nardo PERSON was somebody who actually recruited me into the So I have a long standing Relationship with him or did have a long standing relationship with him. For for many many years he was a mentor. I don't support the credibility of the of the process right at the start. I really know that I had a plea deal With the Tokyo GPE prosecutors. That suggests He was intrinsically involved in some of the wrong doing or the allegations of wrong doing It just Smell ORG right. Just doesn't sit right. So there was a basic conflict of interest. In other words, Had to deliver results Japanese NORP prosecutors to avoid his own criminal liability and he's accusing and leading the investigation of Carlos Gone PERSON . Some of the people who had been involved in the original alleged crimes were also looking into the affairs themselves Rovender PERSON began pointing out some of these conflict of interest issues and the reason
Crimes. We're also looking into the affairs themselves. Rovender PERSON began pointing out some of these conflict of interest issues. And the reason for that is essentially his concern was for the company. If the company's own investigation into itself was compromised I could lead to a very weak position Various lawsuits that it was dealing with across the world. I'd discussions with Harry ORG discussions about Start you through auditors about these conflicts, discussions with HR about some of these conflicts because at that point We reported into him. You know, at the time, everything was quite We've gotta do that. We've gotta move fast But when you step back and look at some of these things you just think my God What was going on here because Me Members of my team were being placed in immediate Danger PRODUCT . You you're They both happen to be foreigners And now what we need to do we're being instructed to do is certain compliance professionals need to go into He's in Brazil GPE for example and retrieve evidence. They've gotta do it very carefully because if they don't do it carefully they're gonna get convicted Criminal activities Unlikewise A team of lawyers will commission to go to Lebanon GPE . I mean one of my immediate concerns was why are lawyers from Nissan ORG being sent to go to Lebanon GPE to retrieve evidence? These are just lawyers that corporate lawyers from Nissan ORG . Revelations that a number of executives had benefited From share appreciation rights Substantive amounts of money being taken by these guys when they weren't entitled to take them And you do think yes. This code to look later on. So that triggered for me The sort of assessment that well I'm gonna have to do something Because Up until this point I haven't put down on paper These conflicts and these issues. So Rob Posse PERSON makes a fateful move. He writes this letter to the board listing Read suspicion he has and great detail backed up by evidence backed up by memos PERSON of why this internal investigation had serious problems. He sends a letter to the board and it's crickets. He doesn't hear much of anything Nothing happened that often Nothing at all. Just like it just gone into a black box. He began to suspect that there was a desire even at the highest level within Nissan ORG to kind of sweep these conflicts of interest under the rug. Fortunately for me I think Again with hindsight People must have thought that this is the nail that's sticking out and we can't have this. Within 3 days DATE of me submitting that to the board of directors that letter to the independent board directors I was removed from the Executive ORG conduct matters. Then told that I could not attend board meetings anymore. And up until that point I had attended every single board meeting.
And up until that point I had attended every single board meeting I was then also told that after 8 years DATE of being in Japan GPE I'd be going back to the UK GPE . Eventually transpired that I'd be the VP of projects in transformation managing a team of three CARDINAL . So you can imagine what this feels like at this stage. Almost an arbitrary removal from Japan GPE where I've lived for 8 years DATE had three CARDINAL children there my family is grown up and we've been settled there A few months early DATE been promoted to Vice President at a global level Moted So Passi PERSON was essentially being reassigned to get him as far away from the internal investigation as possible and also to a certain extent in retaliation to some of the issues that he Up regarding the internal investigation and Harinata PERSON . What happened to Rob Posse PERSON can be seen as a series of of corporate humiliations. I mean, first ORDINAL of all, his immediate responsibilities were taken away from a eventually he'd lost, you know, the COVID in general council title. But it didn't stop there. Toward the end of Hey, in Japan GPE . Ivan PERSON his wife were convinced that they were being followed Ensuring PERSON that period Just that while striving my car Other cars following me. First ORDINAL on my notice this was a round mid March DATE And I was driving. I can't remember where I was going but this grey van Small van PERSON just literally started following me On my notice there was somebody in the car taking pictures On. Lo PERSON and behold, we were absolutely Being followed But either by people on foot Or other individuals two CARDINAL or three CARDINAL normally two CARDINAL burly men in a car different cars at different times following us around They were following the family as well. You know given We'd seen Right scene the Nissan ORG security department behaving a very very egregious manner with others in terms of following Failing ORG . I was very concerned as to what they would do and who they were giving this information to. Because if they're giving this information The authorities you do think why What's going on here? I mean, this is just not normal. View. Rather dramatic event in the middle of 2020 DATE who are you people where Nissan ORG had hired A legal team and had obtained an unusual court order from the district court in Oklahoma GPE to basically do AA search and and of of his home and seizure of his you know corporate laptop On phone and other and other documents. If you don't let us in now, So it's a pretty extreme Treat someone who had spent 16 years DATE at the These people have all come in. We don't really know who they are. Apart from the fact that Shown a badge that says the Oklahoma Court ORG . And they're here to to recover a laptop On the mobile phone. It was even more weird I'd highlighted to the directors That they're That certainness and executives were trying to recover this laptop and this phone whilst I was still in Japan GPE . And I was very concerned because it had evidence on there that related to misconduct matters The forms of inappropriate conduct. It was just another form of intimidation another form of harassment. Forcing me almost to leave the company And the country Because once they'd retained an obtained visit.
Forcing me almost to leave the company And the country Because once they'd retained an obtained these items We were still followed Which again I just couldn't understand what Point of doing that. You know, this is AA car company. This is not the KGB ORG . I think it's fair to say that Rob Posse PERSON didn't have full battlefield awareness The entry going on at Nissan ORG . I mean, hurry not as interesting because he's both charismatic and charming and one of the most brutal corporate in fighters that one could ever run across. You should not have this. Had fallen into line he would probably still have his job at Nissan ORG be paid Very well and continued his work. A career that he spent, you know, 16 years DATE building at Nissan ORG is is your retrievally broken. It's been smashed to Smith GPE , Smith GPE , or Reigns PERSON . He and his family paid a huge price certainly But in terms of being able to sleep at night I think you know he's come out ahead. I highlighted issues To the highest levels of the company so that they could be dealt with appropriately by those in charge There was no response to those and there was retaliation against me. What's really profound like absolutely profound Is that None of you colleagues. I mean people who you have known for years DATE . Forget it. Yeah. You're on your roof. And Yeah, you gotta be ready. Gotta be ready for that If you take it on anyway This is the awful truth Is always someone in the family that's pushing it. This lady Does not deserve to be taken Especially At your age with your own grandchild. Yeah. My grandma is having to sue them I'm testifying against them nobody's talking they're one CARDINAL floor below right now I get afraid to go on the elevator it's sad that it
Testifying against them nobody's talking they're one four CARDINAL below right now I get afraid to go on the elevator it's sad that it had to divolve to this. He said thing. Here's a family that on paper you would think has the wealth that so many people seek yet at the end of the day DATE it's seem to sort of rip everybody apart How many names Tomberg PERSON I'm a senior reporter here at Bloomberg News ORG cover financial enforcement I was approached by someone close to the Sean Stein PERSON family and asked whether or not I would be interested in writing about Beverly Shottenstein GPE and this case that she had Against J. P. Morgan PERSON . Was immediately clear that there was a great story here to be told. So, I started just, you know, assembling all sorts of documents that the family made available to me that included a diary that Beverly GPE had begun writing when she started having suspicions about what was actually going on with her money. Beverly obtained her wealth from the Sean Steen had a retail empire that has AX included big lots value city American NORP Eagle Outfitters WORK_OF_ART DSW shoes Beverly ORG 's husband died and at which point they sold off their portion of the company bringing them enormous amount of wealth and around 1990 DATE Her grandson in the late 2000's DATE had both graduated were becoming financial advisors she gave them a little bit to work with and over time Her grandson Evan PERSON became the trustee of her entire state. Managing sort of family money is not a conflict. In fact, some ways in wealth management. It's kinda how you get your start. It's kinda the seed that you need to sort of get going in the business. But Beverly GPE started having suspicions that something was wrong probably in around 2016 DATE . Well there were suspicious Things but take in separately without everyone talking about their own Is it was hard to really put it together Had written a check to her caretaker Dawn that bounced so she went down to her local chase branch to sort of find out what was going on she wasn't getting paper statements in the mail so she asked them to print out a number of her statements having to do with her checking And her credit card account. So we went to the bank and ask for the statements. And she got a whole year Going through all of them page by page by page. And it was there she saw all sorts of charges that she said she did not the rise or didn't know about I was becoming Very suspicious. I was starting to look in the money park and that's what bothered me more when I saw that money was going and I was not a big spender. It run the same time John she starts noticing Beverly ORG 's son who lived in the condominium below her came up with Evan PERSON with a shredder and started grabbing papers in her office area including some with JP Morgan ORG letterhead and just started sitting at the kitchen table just shredding documents over and over They came in one morning TIME . They used to do it the bath. Through the backdoor. And they brought this treader inside And then they went in the drawers in the office and took all the papers And they start to doing it. Because I know you don't go round and get in destroying papers. Beverly ORG said that they had done this many times before. She said to me you know Dawn i'm gonna write my feelings. In this black book. A diary and she start to write in each day she would write a little at a time. We're on the holidays of 2018 DATE the package had arrived the FedEx GPE package and in it were material
At a time We're on the holidays of 2018 DATE the package had arrived the FedEx GPE package and in it were materials about venture capital fund based out the Cayman Islands Dawn GPE and some other family members take a look at this and they see that Beverly GPE is designed up for this fund to the tune of a One 1 million dollars MONEY over the course of several years DATE . Really the beginning of it that was Sort PERSON of the tip of the iceberg when it became That something was going on that my grandmother really wasn't aware of this funge You know, Beverly GPE started to panic. She was got really upset and called, you know, JP Morgan PERSON 's headquarters in New York GPE and ask for Jamie Diamond PERSON . She said she was told someone would call her back. But she says that that never happened. She wrote a letter to Evan PERSON and Abby PERSON and in there, she she laid out a number of things that Concerning her on off the rise trading the checking account she had about a one 1 million dollars MONEY worth of jewelry in a safe deposit box and that her son Bobby PERSON had the key to that box and that that jewelry had gone missing all this was kinda packaged in this you know five CARDINAL page handwritten A man and two will entrust. Narrative about why the joy was taken. The only truth we really know is that the jewelry is gone but why it happened? There have been a lot of different stories. You just don't take your mother's Wonderful things in hand it out. JP Morgan PERSON to sees all activity on her account. Setting off a fire storm after that As soon as they got this email that there was a season assist and that she wanted to send her money and change brokerage firms they were actually vacationing one four QUANTITY below downstairs through there right now the next day Beverly's in her her place a granddaughter still in in her place visiting Is there and up comes Bobby kinda PERSON barging through the door and he's screaming about what was sent to the JP Morant they're now investigating now And he's furious takes his mother in sort of puts her into a chair gets pen and paper and she says physically forced her to write a retraction letter. Pushing me around. I'm I was really afraid to take her to the doctor And she did an X ray Vacation was in so much pain. To be changed. The phone number had to be changed. I really thought we were gonna have to hire guards to be outside just for protection. Oh, it was terrible. Beverly brought her case before the financial industry regulatory authorities usually known as Finra it took several months DATE to hearings she sees all sorts of transactions that's going on hundreds CARDINAL of them that she claims that she never knew about never We're making all sorts of trading on her account That was generating millions of dollars MONEY in commissions for themselves in the bank yet she was not sort of getting any of the type of gains that you would expect sort of an 80 1 million dollars MONEY account in a bullish market to be able to get they issued a ruling entirely in her favor finding that her grandsons as well as JP Morgan Reliable ORG for violating the misrepresenting themselves and they also found that the bank and her grandson Evan PERSON reliable for elder abuse. Avi. They were fired from JP Morgan PERSON . They issued an award of about 19 1 million dollars QUANTITY . I reached out for comment and J. P. Morgan PERSON emphasized that Evan PERSON and Avi were no longer with the firm and that their actions do not represent the sort of values of the of the bank. I reached out to Evan PERSON and Abby PERSON , heard back from their lawyer That, you know, they disagree with, you know, the law and
Represent to sort of values of the of the bank. I reached out to Evan PERSON and Abby PERSON , heard back from their lawyer saying that, you know, they disagree with, you know, the law and the facts that Finra kind of used to decide the case against them and are seeing if they can have it withdrawn. Her son, Bobby PERSON , Criminals Admits to taking her jewelry and he says he needed it to pay off some bad business debts he had They never once came up to say i'm sorry. Bin PERSON and apology and some acceptance And and asking for forgiveness from my grandmother i don't think we'd be in the position that we are now. Since a piece came out we've you know we received dozens CARDINAL of messages from people many of whom are telling their own sort of personal tales of Financial advisors gone bad or family members who got control of in a state and abused you know those within Seems sad it's it's really resonated with a lot of people who I Keep you know hearing a lot of feedback about Beverly and how you know a lot of people feel she did the right thing. To stand up for yourself and try to write an injustice she was adamant that she wanted to stand up for herself but at the end of the day DATE They did wrong It's a painful life lesson. You know Beverly taught them that you don't mess with grandma. April 20 DATE oil markets did something that never had before and they crashed went into negative territory and closed the day DATE at minus $40 MONEY meanwhile In a place called The group of nine CARDINAL traders led by a guy called cuddlers made 660 1 million dollars MONEY over the course of a couple of hours TIME Has collapsed to a record low. We've never really seen anything like it. WTI this morning down more than 35% PERCENT . The all price went to minus 38 it went far lower than anyone had expected and so lots of people on the market were saying well hang on something else is going on here A couple of months later DATE I started to get wind through a kind of network of sources that a tiny firm in their outskirts of London GPE had made a huge amount of money that day DATE and potentially had some part to play and what happened? The information we got was the nine CARDINAL traders of Vega Capital London ORG had made in the region of 660 1 million dollars MONEY in 1 day DATE as a group I think they made as much money in 1 day DATE as Apple ORG makes from its international sales 1 day DATE . I mean, it's an insane summer month DATE . Did they pull off a fantastic trade? Did they predict the way the market was moving and get it absolutely right? Or was there something else going on and had they actually And that investigation is is ongoing. So Paul Commons ORG is a trader who cut his teeth in in the pits in the the 80s DATE and 90s when everyone had a nickname his was cuddles If you can imagine that was a very Type of world where people are doing, you know, hundreds of thousands and millions of dollars CARDINAL trades by
If you could imagine that was a very sort of Throw GPE type of world where people are doing you know hundreds of thousands and millions of dollars CARDINAL trades by shouting at each other Giving hand signals and then scrolling on scraps of paper The culture of the trading pits in London GPE was very influenced by the working class guys who became traders there. They weren't like the city bankers that had gone before them. They weren't usually Oxford ORG or Cambridge GPE . You know they didn't wear saddle rows suits. They were ordinary working guys. You happen to have a talent for trading. And Came from Essex. Think it was 400 CARDINAL traders in the pits and cuddles in his you know all in gas pair was described to us as amongst the top three CARDINAL among you know in amongst that was very successful and and made you know very large amounts of money as it as a young man but you know inev Mechanization PRODUCT and the arrival of electronic markets was the kind of death now for the pits and in 2005 DATE the IPE ORG closed down and when the pit shutdown a lot of the traders who worked there lost their jobs or quits or went to work financially institutions but Paul PERSON comments decided to start his own Some of them are ex pit guys cut from the same cloth as him lots of them are actually sort of in their 20s ORDINAL and they're he's you know drinking buddies son or there he's own kids friends from football you know they're they're young lads Hungry GPE and ambitious and he brings them into the fold and fairly shortly he's got you know maybe a dozen or CARDINAL so They're independent. Let's be clear but they're all part of this collective. Yeah let I'll let Liam do with Essex I am from Essex so I feel like I'm free to you know to get to this sweet as they say. If you want to ask someone in Britain GPE how they would imagine AA conversics person they would see someone who's maybe slightly flamboyant with a cockney accent You know not afraid to splash the cash but it's probably pretty bright and it's done well for themselves. But you know these guys they drove around Places like Mar Bay Area on holiday Fading boys is very wealthy place. You have to have considerable income to be able to afford to live in that village. It's a really nice place to live. And it's 20 minutes TIME to cheap ride away from the city. Earlier in the summer TIME we have this lead which is that there's this tiny firm called Vega Capital London ORG and they were the biggest winners from the biggest oil crash in history you know anyone that covers markets is gonna be surprised about that you Thinking your BPs of the world or your Glen PERSON cause but is this tiny firm and one CARDINAL of the big challenges that we had was actually finding out who worked with Vega Capital PERSON . It wasn't immediately obvious. No first ORDINAL we had absolutely no idea. If you go to the Vega Capital ORG website it says it's under construction. If you do basic online searching it's very difficult to find anyone who's publicly connected. It's the So inevitably we're incredibly curious at this point like who the hell are these people? The more reporting we did the more it became clear that this group were connected socially as well as professionally. They went to weddings together. They played golf together. They would go on holiday together. We found out that a number of them were members over the West Ham supporters club in London GPE . A few Started companies together so you could see all the connections between them and start to see a distinct group emerging Just was this kind of shock that you know this wasn't just like a hedge fund or a firm you'd never heard of. This was actually a group of buddies who all had the same experience on this day DATE and it had all made a huge amount of money. So if you're an oil trader there's a number of different ways you can trade and and probably the most popular is WTI futures contracts and it's basically a contract that says I'm gonna buy a 1000 barrels QUANTITY of oil from you at this point in the future or I'm going to sell a 1000 barrels of oil to you At this point in the future. It's actually just a financial contract to gamble on to predict whether oil is gonna go up or down.
Boil to you at this point in the future. It's actually just a financial contract to gamble on to predict whether or is gonna go up or down On the 20th of April DATE in Essex Signals for a while that this was gonna be an exceptional day DATE in oil markets and we know that some of them arose early and started their trading in the early hours of the morning TIME while it was still dark outside. Essentially what they were doing is buying contracts that gave them an obligation to buy oil at whatever the price ended up at 2:30 PM TIME . So they're basically placing a bed that oil's gonna fall throughout the day DATE . But they're simultaneously selling lots of oil as well. And the weather they make a profit and how much profit they make is the difference between what they buy the oil for and what they sell the oil for. Now of course we now know throughout April 20 DATE the price dropped and dropped. So this is going very well for them You know they are committed to selling oil at these prices and the prices are continuing to fall which means they're gonna be into offset it and buy oil at cheaper at the end of the day DATE . Now once it gets to kinda GPE 1:32 PM TIME : that's when things start to get really interesting. Suddenly there's a kind of influx of of buyers and sellers you know desperation increases in the market and trading volumes go up now 2:08 PM TIME : exactly something bazaar and unprecedented happened The oil passes into negative territory and it fell to a record level of minus $38 MONEY . We've never seen anything like it period in terms of the contraction of the global economy. Huge golf between what they were buying the oil for what they were selling it for enable them to make more money than they ever thought possible. So they're profit was the difference between Minus 37 and all of these positive numbers on every contract they sold. The price of crude briefly hit minus $37 MONEY a barrel. For one CARDINAL group of traders operating from a small office, it was a very very profitable day. It's important to remember this this had never happened before in the history of all trading. No one could have predicted it. I can't think of another example of where Interest rate or you get paid on both side. You get paid both to sell One CARDINAL thing we know about the cuddles trading arcade is that they were very comfortable taking large risks and you know you have to be clear this was a large risk. Yeah we spoke to oil traders both people that know these guys and people that don't and they also say that this is you know incredibly risky and that's Stops a lot of all traders doing trading like this. They simply aren't willing to stomach the risk. But cuddles in his friends' work. So when they're kind of final calculations came down the group of the nine CARDINAL most profitable traders made 660 1 million dollars MONEY or thereabouts between them I mean if you can imagine I think three CARDINAL or four CARDINAL of them made in excessive 100 1 million QUANTITY each Wanna be astonishing things about this trade is that two CARDINAL of the individuals who made more than 100 1 million dollars CARDINAL in a single day DATE We're in their 20s. One CARDINAL of them was 22 years old DATE . You know, only a few years earlier DATE , he'd been posting on his social media about doing teenage stuff with his mates in town and going to see girls and rap music and here he is a few years later DATE making one One 1 million dollars MONEY in a single day's DATE trading. When me and Liam PERSON discovered that we were just we couldn't believe it. We couldn't believe what we were seeing. All trading is a is a oh sum game anytime you're making money is an all trade as someone else is losing it amongst the biggest losers were the investors in this Chinese NORP fund crude oil treasure fund There were thousands CARDINAL of them and they lost everything. Lots of people have put their savings into oil funds. They lost money that day DATE . Big banks and brokers who sort of stand in the middle of trading parties. They lost money that day DATE . And another interesting thing is the oil producing countries like Q eight or Canada GPE . They sell oil. An average of the WTI closing price over the proceeding month DATE . So the fact that one of those numbers in the average was minus 37 meant if you can imagine countries like Saudi Arabian NORP Q eight CARDINAL potentially lost a couple of dollars MONEY on every single barrel of all they sold that month DATE . Burger capitals traders may touch an extraordinary sum of money that
Dollars on every single barrel of all they sold that month DATE . Vega Capital's ORG traders made such an extraordinary sum of money that it was inevitable they would be some scrutiny of what they did but it wasn't just the sums of money they made in a vital half an hour before the settlement price was set They were by far the biggest sellers of all futures in the market which is an incredible thing to think about when you consider the the other participants in that whole market are gonna be the world's biggest banks you know oil majors BP ORG and shell and here you have a group of nine CARDINAL guys in Essex who are having a significant influence over a global market for oil These guys have made seven 1 million QUANTITY or 10 1 million dollars MONEY they probably would be celebrating in Essex right now but the fact that they made closer to 700 1 million QUANTITY has meant that Are facing understandable scrutiny. We wrote individually to all the all the bega traders who did exceptionally well that day DATE and we got a letter and response from a law firm who representing the group The law firm was at pains to point out number one CARDINAL they haven't been accused of any wrong doing That they all traded independently and separately and they'd basically all made up their own minds that this was what was going to happen in oil markets based on publicly available knowledge and decided to execute this trade. What I love about these stories is there's a real variance of opinion and some people will look at what happened and think that must be dodgy. They all traded at the end of the day DATE . They all made a huge amount of money while all these people lost. That's shocking. But lots of Will say these guys are acute disadvantage. They're in a market that's inhabited by, you know, huge Driven And firms and oil giants that have got all the advantages in the world and when you get a bunch of Essex geezers who essentially beat the market and find a way to make a huge amount of money they should get a pat on the back really because that's the dream. Since this happened a lot of the guys have stopped trading the monthly DATE settlements that they've done so well out in the past several of them have set up new companies they've essentially gone very quiet you Social media presence they had is Kinda GPE close down by all accounts there Waiting this out. It's certainly too early to try and predict how the regulatory investigations are gonna pan out you know we just don't know There's a number of potential outcomes for these guys. You know, potential punishments if there are any findings of manipulation against Vega PERSON or anyone affiliated with it, might be you could be fined, you could be banned from trading, You know in the most extreme cases there have even been criminal prosecutions in the past Of people who have been found to have been manipulating the settlement Misconduct ORG related to to trade it settlement. There are the outcomes too. You know one one CARDINAL obvious one is gonna be they're able to walk away from this life changing trade with all the money that they made and celebrated as heroes in the trading community that you know they'll go down as legends. It's very important given that nature of the climate crisis right now for the general public to have an understanding of what progress is or is not actually happening and I think many readers right Big bold climate claims And they would be forgiven to think that Were well on our way to meeting the emission reduction trajectory
And they would be forgiven to think that Well on our way to meeting the emission reduction We need to be on. A reason for this sort of disconnect is the use of offsets that aren't doing what they claim to be doing We have a massive potential for sort of willful blindness. We can convince ourselves of things regardless of what the facts are. And so that's what tends to happen in these cases. It's not that it's not that anybody is setting out to commit climate fraud. They they sort of walk themselves into a situation and they convince themselves of one CARDINAL thing and that allows them to convince themselves of another thing but at the end of the day DATE they're doing something that makes My name is Ben Elgin PERSON I wrote the story about how the one 1 billion dollars MONEY market for carbon offsets is setting back the fight against climate change. So one CARDINAL of the challenges in reporting on carbon offsets and trying to figure out what's going on is really finding good experts who who have been steeped in this marketplace and are willing to candidly talk about it One CARDINAL of the best people for this is a fellow named Mark Trexler PERSON and I've been talking to him for more than a decade DATE . My name is Mark Krexler PERSON . I've worked in climate change for the last 30 years DATE . I was actually hired by the World Resources Institute ORG in Washington GPE to work on the first ORDINAL carbon offset project in 1988 DATE . In terms of defining a carbon offset that one CARDINAL of the beauties so to speak of greenhouse gases sort of the silver lining of greenhouse gases Atmosphere it can be anywhere in the planet in 7 days DATE . And therefore, you know, if there's an option to reduce emissions on the other side of the planet and you can do that very cheaply as compared to doing it in your factory, for example, then, why not pay To reduce their emissions. Then you are in a sense of setting your emissions and the atmosphere doesn't really see your emissions anymore. So carbon offsets have been been around for quite some time and they're actually key with these international climate agreements such as the Keoto PERSON protocol which mandated the wealthies Reduce PERSON their greenhouse gas emissions. The treaty was signed on the 11th of December 1997 DATE . A business community it in general saw a carbon offsets as a huge opportunity to comply with whatever policies and measures might be coming down the pike on climate change much more cost effectively We've seen a huge surge in companies making big proclamations about how they're going carbon neutral or oh in out all of their carbon emission We're going to reduce our carbon footprint to net oh. Committing oh initiative. Dramatically reduced emissions and we noticed so many of these companies were using carbon offsets to to to achieve these. And as we begin to look at the carbon offset projects themselves We found is that the environmental benefits claimed by these companies are not actually what they what they seem to be. As we sort of saw and spotted a number of these very aggressive carbon offset projects which appeared to be generating inflated credits or bogus We saw a number of them were associated with the nature conservancy. This surprised us. The nature conservancy is the world's biggest environmental group. They have about a one 1 billion dollars MONEY a year in revenues. And they've been around for seven decades DATE They've preserved about 125 1 million acres QUANTITY of land They've done so many good works over the years DATE and they've been very strong in terms of working with corporate partners. The nature conservancy is taken a different approach a very pragmatic
The nature conservancy is taken a different approach. A very pragmatic and pro business approach. They will not go out and criticize a big polluter but they're very happy to work with them. Some might say that well that's selling out but others would say and and those at the nature conservancy would say these companies have deep pockets. They can help fund important preservation work We have absolutely no problem working with them on this stuff So companies are very warm and and they've partnered with a nature conservancy for for many years And yeah definitely lens a sheen of credibility to these projects. Here is Tony Mary PERSON . This year DATE . If you look at for instance Disney that's a sprawling company with theme parks and and cruise lines that burn up Diesel fuel. They have office buildings and television studios. I consume electricity. So these companies are trying to make major major reductions in their carbon footprints but it's very difficult to change these fundamental ways their businesses operate So disney has been a big buyer of carbon offsets that are orchestrated by the nature conservancy One CARDINAL of the projects that they buy from is called Pennsylvania Ridges ORG . And that's a plot of land. Most of the land is actually about 3 hour TIME drive outside of Philadelphia GPE . Interestingly this land 3000 of these acres was actually acquired by the nature conservancy in the late 1990's DATE This land was imminently threatened. There was a pending logging contract on this land. So, they they do what they they've done so well for all of these years which is they go out. They raise money from local phantopists and they go buy this land to protect it from developers and logger And at the time according to an archive version of the nature conservancy's They when they were proudly announcing this deal they said these threats have been abated because of Acquisition by the nature conservancy. So, it's really interesting now. Fast forward two decades to earlier this year DATE when they put forward this carbon project And if you look through it this land is a key part of that carbon project And what they're now saying is this land is now once again imminently threatened 72% PERCENT of the trees are gonna be cut within 5 years DATE Now this is just astounding because this land is owned by the nature conservancy. They do not clear cut land that they've bought through philanthropic donations. Scenario that they've put forward to get carbon revenues is not really plausible And what that means is when you have Disney coming in and buying these credits. When it eventually lowers its carbon footprint because of these credits well that won't be incredible or truthful claim by Disney ORG . So this is this is an organization that truly understands the the threat of the issue of of climate change and is wanting to do its part to address this However, in this situation, it just appears their their drive which they've had for decades DATE to increase the amount of revenues that it can use for land preservation work Nature conservancy and many others see that the carbon credits as a pot of money that they can tap into to further their own benevolent aims but unfortunately what this has resulted in is claims of climate progress that just aren't really happening So, the nature conservancy defends vigorously these deals and and they and and others will say, look, our projects are just following the rules that these registry So someone also put some of the blame on the registries themselves because they're setting up the rules which allow these vapored projects to get up and sold. So we've reached out to all of the companies we mentioned in the story including Disney that didn't want to be interviewed for the story but they And those experts they say are these carbon
They didn't want to be interviewed for this story but they all told us that look we have to rely on the experts out there and those experts they say are these carbon registries that have been set up. Most of these nature conservancy deals are set up and sold on this exchange. It's called the American Carbon Registry ORG . Now it's the oldest of these registries Allow voluntary carbon credits to be sold. They've been around since 1996 DATE . What these offset registries do is they set up rules and any carbon offset project has to follow those rules But there's this tension that's always there if Rules that attract projects but they don't want it to be so strict where it will disincentivize projects from getting listed. One CARDINAL of the the challenges with with designing carbon onset systems is that there are normally two CARDINAL people The table. Make a lot of things happen Both of them sort of want the same thing or they're both happy with the same thing. They're happy with low cost, offsets, and a lot of the Because that works for their business model You end up though with nobody really representing the atmosphere So to speak nobody's really representing the climate In those discussions and so the policies end up by using the whole system. And and you you end up in sort of a race to the bottom and that's what we've seen happen. You know when it comes specifically to the topic of carbon offsets I am a fan of carbon offsets in the sense that they can help me to get climate change. They absolutely can. Bye. Climate change then it's nothing but a distraction And you know, after 30 years DATE , you have to start wondering, is it really just a distraction? And that's really unfortunate but that's where we are. Ultimately, what needs to be, what needs to happen is systemic change. You know, we're we're sort of nibbling around the edges with some of these different things. We need to change how we produce energy. We need to change how we transport ourselves. We need to change what and how we eat. We need systemic change Associated with transitioning to a low carbon economy. A lot of what we're doing today DATE is not promoting systemic change it's sort of trying to stick your your your thumb in the dike To preserve the current system And and at the end of the day that can't really
The hyperloop. There's a good chance you've heard the name by now. This is the hyperloop system. It can take people hundreds of miles QUANTITY in minutes TIME . A series of tubes that would transport people in pods and ultra high speeds over long distances. Transportation that can whisk people from city to city in a flash Minutes FAC from new york GPE to DC GPE 30 minutes TIME from LA GPE to San Francisco GPE For years DATE we've been seeing these futuristic utopian renderings of some cross between a spaceship and a monogram But lately the hyperloop is becoming much more real. Writing down a track in something that was nothing more than a crazy idea 6 years DATE before. Companies all around the world have been developing and testing the technology needed to propel passengers speeds of over 1000 km per hour. But for many, speed is only the first ORDINAL step to unlocking the full transformational effects of a new mode of transportation. Fast is what we just sort of take for granted in the High Volute World ORG . It's the network effects that really deliver the benefit. And that opens up a completely different scale of economic We've got plans Boats we're getting around earth. What if there was a foot QUANTITY mode? And I have a name for it. Name for it which is called the hyperloop. Hyperloop? Hyperloop? Yeah. In 2013 DATE while riding high on the growing success of Tesla and SpaceX Elon Mosque released a white paper outlining the basic framework of the technology he called hyperloop. The basic idea goes a little something like this. A tube reduces the air pressure to a near vacuum like environment. A hyperloop pod is then suspended in the tube. Usually by magnetic levitation. The whole pod can then be propelled forward Because there's no traditional friction sources like air resistance or rolling friction that would push back against the pot Is able to move it incredibly high speeds and do so fairly efficiently. Despite its futuristic name however the general concept behind hyperloop is actually pretty old. In fact New York City's GPE first ORDINAL attempt at an underground public transit system in 1870 DATE 's was based on a similar principle. The pneumatic transit system was short lived however only stretching one CARDINAL block and topping out at a rather leisurely 10 mph QUANTITY . While Elon ORG would make some 21st century DATE improvements to this concept and bestow over a 21st century DATE name. He wouldn't end up pursuing the technology itself. Likely to focus his efforts on something a little bit deeper. Digging the rack was it tunnels by his boring company It would take another billionaire industrialist to dabble some space flight No, wait, not that one. Yeah, that's the one After Richard Branson PERSON would make a large investment in the company hyperloop one it would be renamed to virgin hyperloop Has been trying to do as a company Couple of years not the next 20 years DATE . Josh Geigel PERSON is the co-founder and CEO of Virgin Hyperloop PERSON In a familiar tech startup story he's seen the project go from a garage to a large scale testing facility outside of Las Vegas GPE So, we started building the first ORDINAL kind of hyperloop system in 2016 DATE . We've done a lot of work about 500 CARDINAL tests that we've done a matter of the last 5 years DATE Take that technology show that it can be commercial so drive the cost down improve the efficiency approval performance but the key thing is you know is actually making it approachable and safe for individuals. In order to do that, Josh PERSON , along with virgin's head of passenger experience, sara Lucia PERSON bravely volunteered to take the inaugural
For individuals. In order to do that Josh PERSON along with Virgin PERSON 's head of passenger experience saraluchi bravely volunteered to take the inaugural ride With her and I were realizing it's like we're the first ORDINAL two CARDINAL people sitting in a hype room the only type of people that have gone through this environment or in space it's in there we are in just like normal clothes because of the system the safety of what we designed really Two Watch PERSON and then once we started going you felt a bit of acceleration we accelerated a little bit harder than we would in commercial be like a sports car. We got about 108 CARDINAL mi an hour on that test and it's a short run it's about 500 yards QUANTITY or so Came to a stop Lasting only about 20 seconds TIME and covering only a quarter per mile at just over 100 mph QUANTITY is a long way away from a true functioning hyperloop but as for optics it's a crucial step for the future funding. Number one CARDINAL question we got from investors are from project proponents or just people in general was like is a hyper And what better way to show something is safe than by actually getting people on it But convincing investors and governments that would likely be fronting some of the construction costs for an unproven technology there's no easy task First ORDINAL and foremost is the question of safety. Most people don't know how an airplane works but yet they get on an airplane. They get on an airplane because you know, it's faster than driving and most importantly, they've probably gotten off of one CARDINAL before. They've seen someone get off of one before And so what we set out to do was actually show the hyper loop could be safe what two CARDINAL normal people not astronauts not adrenaline junkies or test pilots or anything like that so normal people getting on a hyper lube and then most importantly this two CARDINAL people getting off. For Beyonce GPE concerns constructing hyperloops will undoubtedly require a significant capital investment to be estimated tune of around 60 1 million US dollars MONEY per kilometer of track. So a track from San Francisco GPE to Los Angeles GPE for example is likely to come with a price tag over 10 1 billion dollars MONEY . And before large governments are willing to come in and front those Investors who are funding hyperloop development must accept it as a long-term mixture of technology and infrastructure investing. Investors that are used to short returns because you're developing apps or something to that effect, you know, those aren't the investors that really get Excited PRODUCT about hyperloop. And that's the part where you're gonna get a lot more nose than yeses. But those people that have the ability that afforded to the stick it out to see the game changing platform here those are the people that were looking for and since we've done that passenger test there has been a lot of interest that's really oh this is a lot sooner than I thought Envisioning the ripple effects of what hyperloop could achieve those fairly challenging at this stage or development It's fast, yes, but for point to point travel, traditional mag live trains can move pretty fast as well. And outside of China GPE , South Korea GPE , and Japan GPE , even those haven't seen much adoption elsewhere due to the high costs and questionable profitability. The Shanghai Line ORG in China GPE for example loses around 100 1 million dollars MONEY every year DATE . Hyperloop companies, however, believe they can offer something different than traditional railway lines. My name is Alan James PERSON As far as I know I'm the only guy on the planet who's written the government level business case for 100 CARDINAL KMH conventional high speed rail 500 CARDINAL KMH Maglav PERSON and 1000 CARDINAL KMH hyperloop
All high-speed rail 500 1000 QUANTITY KMH hyperloop. It's fundamentally about moving people from where they are to where they want to go when they want to make those journeys And doing it in much smaller numbers so pod designs for high poop range from 12 to 28 CARDINAL seats typically Why are they small It's because small enables the network to operate flexibly. I'm a great example of that. Is the east west strategic route across the north of England GPE ? From Liverpool GPE to Manchester PERSON to Leeds PERSON ? So to get from Liverpool GPE via Manchester PERSON to leads by trainers just short of 2 hours TIME today DATE it'll probably take you 2 hours TIME driving as well in in average traffic Let result is those three CARDINAL city regions remain three CARDINAL separate entities Liverpool GPE , Manchester GPE , Leeds PERSON . There's very little commuting traffic Between those Urban ORG areas. Hyperloop From the ground up Liverpool GPE to Manchester 5 or 6 minute TIME journey Manchester PERSON to leads is also a 5 or 6 minute TIME journey. What effectively does is create a single super city economy. In this vision the hyperloop acts a little more like a highway where pods have fixed destinations and don't need to stop along the way. Meaning you can travel on a hyperloop network from say Liverpool GPE to weeds while the pod behind you travels from Liverpool GPE to Manchester PERSON And if that metro FAC hyper loop network is connected to other networks from the same location you could travel from Liverpool GPE to Paris GPE or Liverpool GPE to Amsterdam GPE all without making a single stop. For passengers For business For leisure that is utterly transformational For high value freight and logistics it's equally transformation Book critically If you do a hyperlute network at scale You begin to deliver Massively significant carbon savings to A multi-regional hyperloop network could become a replacement for both short haul passenger and cargo flights and traditional ground transportation Both of which are significant carbon producers. Hypo connected distribution hub Perhaps at an airport that is predominantly used for international air freight Maybe 10, 12 DATE , Distributed road hubs. It takes a lot of polluting and inefficient truck hollage off the roads. That it's so Roads going extra capacity Hyperloops will still need to use electricity to both move pods and maintain the near vacuum environment and the tube. Performance of the technology believe that this could be done by using renewable sources including a combination of solar panels and battery technology that could be used along the hyperloop itself. But even with all multipliers of time and carbon emission savings that hyperloop network may provide the investment capital required to actually build such a network becomes even more economically and politically Committing doesn't mean spending billions CARDINAL on day one Committing means How do we face it One CARDINAL company and the Netherlands GPE is working to develop that technology and perhaps more importantly the international coalition needed to make the hyperloop network a reality. So we are here in Europe LOC 's first ORDINAL full scale high blue test facility But we can already prove every conceptual technology of the iPhone ORG . This is Tim Houder PERSON a co founder and CEO of Heart Hyper Loop PERSON headquartered in the city of Delph And while this testing tube might not seem as large as others inside is key technology to create the on and off ramp type infrastructure of a hyperloop network that is a lane switch. Can already pass the area you can actually see it here. Diversity from one track into
Network network that is a lane switch. Already past the area you can actually see you there. Eventually split up the iPhone ORG track in two CARDINAL And it does change you can create a complete eye group network within the end we'll make it possible to travel for example over a whole continent I think you're for example We're the same ease as you can now travel with a metro in the city The nice thing about this magnetic levitation system that we've developed Is that there's absolutely oh moving components in the track So for example if you have to do a lane switch All you do is that the two CARDINAL basically splits up. And statically the tricks also split up And whenever the vehicle enters a switch it either pulls itself to the right with Or pools itself to the left with it magnets. Lane PERSON switching on traditional rail requires the physical movement of the rail. Even moderate magnetic levitation tracks use lane switching techniques in order to transfer trains from one CARDINAL track to another. Very crucial elements because this is the thing that limits the capacity In the end the usefulness of the real network Because the moment that a track is switching that means that a dead moment you are creating an unsafe environment for the trains behind it so you need a lot of space between drinks Because you have no moving components in the track. All the vehicles can be much closer to each other. You can achieve a very high frequency and basically have your vehicles moving and merging in and out of the network very much like a highway. For now though hearts physical testing has been limited by the size of their tube because the test track is only 30 m long they haven't tested this lane switch at speeds greater than 20 km per hour QUANTITY however the company is working to build a new test site Plans to increase that testing speed to 300 km per hour QUANTITY . We're not gonna face where we have proven most of the most important technologies in the test facilities And we have also demonstrated the viability and the feasibility of a network If you'll look at all the top systems that it consist of most of those are proofing systems are very demonstrated in lap conditions so we don't really believe that's the technology itself is going to be the biggest challenge Because for all hyperloop companies out there actually building a hyperloop system requires more than just a good product. We're talking about the safety aspects we're talking about integration into the environment. We're talking about social aspects. Do people feel comfortable travelling in such a system. So it's about all these different aspects And the complexity is really getting all the different stakeholders that are relevant. And that needs to continue to bring this to markets. To get them all Doing the same rope map. In order to help build this coalition of private and public interest in hyperloop development 2018 DATE partner with other hyperlib companies from Europe LOC and Canada GPE . The goal was to define established in standardize the framework to regulate hyperloop systems. Right now, we are working with all the hyperloop developers together in setting up the first let's say structure for the for starting the Standards drafting. One CARDINAL of the most important goals for heart is interoperability which is essentially making sure the different systems can communicate with each other Is so important because what we want to achieve is actually have this seamless travel experience so you don't want to end up for example going from Madrid GPE to Paris GPE and then switching because you need to use a different technology to
I've experienced so you don't want to end up for example going from Madrid GPE to Paris GPE and then switching because you need to use a different technology to get Example to Amsterdam GPE . The idea being that as companies run Europe LOC create the first ORDINAL commercial hyperloop tracks between individual cities. 1 day DATE those can all be connected to a larger network. Everyone that believes that I believe is a future transport system. Also realises that there is a need to have this network Because that's where a hyperloop thrives. It's such a huge project. It's definitely not something that that you can do in your own or as a single company So you need to do it with a lot of other companies You need to have to governments. I think that sends the biggest challenge if we can count it. It's a really get all the required parties together to take the steps in development and in commercial implementation. Heart's next plan is to build the European NORP hyperloop center an open testing facility which will include a two CARDINAL . Six CARDINAL km test track and the company hopes to test travel speeds there at up to 700 kg QUANTITY Per hour. Virgin hyperloop is also racing to construct the first ORDINAL commercial hyperloop route With projects in various states of development in India GPE Saudi Arabia GPE and the United States GPE . Recently the company announced plans to build a hyperloop certification center in West Virginia GPE which will include a six CARDINAL mi long test track. Proving the technology here will be crucial if hyperloop networks can find a home among infrastructure investments that the Biden PERSON administration hopes to make the idea there's multiple hyperloop companies I think is a redeeming aspect in the People really want to see something happen so having multiple people move forward Is is good for that I was struck When Sarah PERSON wrote the pod Of the major outlets use the phrase we now have a new mode of transport and although all of that technology had existed before those two CARDINAL human beings wrote it yeah It was the moment at which those two CARDINAL human beings traveled that short distance down the tube but in popular imagination hyperloop became a My team is that you know the right brothers refers but none of us fly on right brothers airlines ORG anymore. If you don't continue to innovate, you're not gonna be around and so we'll continue to be at the forefront of building Back in 2013 DATE Elon had an idea I think the difference now in 2021 DATE is some brilliant engineers of Been real time grinding out the details I thoroughly expect the next 3 to 5 years DATE to be decisive
This week DATE how high children can transform our energy usage we'll look at why the universe's most abundant element could be a game changer in the climate revolution Energies are not new. They are used in in other sectors. We use them in space on our rockets and we don't need the rules of physics to change to be able to use hydrogen on our planes. From Iron Or to Green Hydrogen PRODUCT one CARDINAL of Australia GPE 's richest men tells us about his pivot to sustainable energy. Let's take action It's implementable No. Plus the hydrogen revolution will speak with the CEO of Italian NORP utilities firm snam about his new book and how green hydrogen could be competitive within 5 years DATE . Headquarters in New York GPE . It's a new year DATE so here at Bloomberg Green PERSON we're highlighting new solutions in the fight against climate change and one CARDINAL of those is as old as the universe itself hydrogen it's the simplest element around but could well be a game changer when it Turning around are dependents on fossil fuels Today DATE hydrogen is used in the chemicals industry to produce petroleum products. It's also To be used in steel production and industry under a lot of pressure to decarbonize but it Far more uses as well from powering cars to heating our homes and Bloomberg PERSON Do you finance? Sector in the next 10 years DATE as green hydrogen squeezes out dirty alternatives so called gray hydrogen dominates today DATE but as renewable electricity gets cheaper and more accessible Hydrogen GPE In this week DATE 's edition of Bloomberg Green PERSON we'll explore what this push into hydrogen means for tackling climate change we'll hear from Australian NORP billionaire twiggy forest about his pivot from iron or two CARDINAL hydrogen and we'll also speak with the CEO of All your utility companies spam about his book The Hydrogen Revolution WORK_OF_ART but first ORDINAL what are we using hydrogen for and why does it actually matter? Christine Lee Edwards PERSON explains. Hydrogen the most plentiful element in the universe On earth we find it mostly bonded to oxygen in the form of water Hydrogen GPE gas Htwo burns hot and clean making it an attractive tool in the race to net oh but isolating hydrogen from other elements is no easy task Chemical ORG processes that break up natural gas. This releases a lot of carpet dioxide. Another method is used electricity to split water molecules. In a process called electrolysis. Although there is no carbon byproduct. A lot of electricity is needed. And if this Comes from burning cold or gas. Missions goals of using hydrogen to begin with. Hydrogen ORG produced in this way. Powered by fossil fuels is called gray hydrogen. If carbon capture a storage is used together with fossil fuels then it becomes blue hydrogen. If nuclear power issues, it's called pink. Renewable sources this method is considered emissions free. Did that by the early 2030's.
Hydrogen ORG . It's what is produced via electrolysis and powered from renewable sources. This method is considered emissions free. It's predicted that by the early 2030's, Htwo made for renewables will be cheaper than that made from fossil fuels. That hinges on the cost of electrolysis declining which will be achieved through larger projects and an expansion of manufacturing. To be clear, vast amounts of Htwo ORG are already used today DATE . Global production in 2018 DATE , totaled 117 1 million metric tons QUANTITY . This hydrogen is mostly used for its chemical Some sectors like steel could start using hydrogen for these chemical properties replacing coal industries like submitting glass may also use hydrogen as a source of heat Advantage ORG is it's energy storage potential it can be stored over long periods of time and used when more power needs to be added to the grid it also could hold an advantage over batteries and heavy transport and shipping The promise of hydrogen for energy has been around since at least 1874 DATE when Jules Vern PERSON wrote about it in his book The Mysterious Island WORK_OF_ART . But the future of hydrogen Carbon PRODUCT pricing and hydrogen strategies with investment mechanisms are likely to see the highest Htwo demand. Explaining what hydrogen means for the energy transition but how are businesses The sector. Well, one of Australia GPE 's richest men is making a big play into hydrogen. Andrew Forest PERSON better known as Twiggy PERSON made his fortune from iron or being the chairman One CARDINAL of the world's biggest minors but after I meet over 10 1 billion dollars MONEY in profit from the medal in the last fiscal year DATE 20 Transform for discue into a clean energy company he's been scouring the planet in search Opportunities PERSON in hydrogen and renewables. The front plants to allocate up to 10% PERCENT of its annual profits for green energy investments. And is exploring projects across the globe from Indonesia GPE to Argentina GPE . Friends in Laqua ORG caught up with twenty CARDINAL -forest. There's only Type of clean hype and all the rest is 30 CARDINAL yep. That is great. Just say green hygiene is clean. The rest is dirty then you've actually nailed it. And you know anyone else who produces any other rubbers any other I could just look in the outside. Why? Is global warming accelerating if anything is saying is true? And then there's no actually it's brainwashing. Yeah but there's a lot of green washing because I keep on being told it's a transition. We can't just, you know, make the transition at a click of a finger. So, what are we doing wrong? What can we do better? The personal computer having to transition the typewriter. I really don't remember that. I don't remember the the smartphone having to transition the pocket calculator and the old landline. No, it's transitional is complete rubbish. The lie got hooked to it. 2 days ago DATE Really love British NORP couple The country Huge got together One 1 billion US dollar MONEY agreement. Right then that's a real wake up call to say hang on Obviously commercial now No every other form of fuel hydration You know it can compete with it on price it can probably lose on price but what we know it is cooking the planet Don't worry about the molecules. Right. In the supply. But at the moment we'll not even facing our call. If you're going to G 20 okay. So we have a long way to go to talk about only using green hydrogen. Yeah so look I have a call so I'd like to make now. The world should not fund Right Just like gray and blue hudging it's No.
We should wind them down as quickly as possible because Just like gray and blue hutch in Yep. 10 to 16 CARDINAL times more carbon So why are leaders so slow even if you look at the appetite for your investments they're growing exponentially so our missions so where are we allocating capital okay so take the recent 220 DATE There's probably a reason why there wasn't strong action coming out of the G 20 Because people were not aware Major transactions between large Actually this pollution free all the way to the supply chain fuel is now being transacted at multi one 1 billion dollars MONEY scale Any energy Could not take ultra seriously then green heart is never here to stay it's broken through It will never go back. Okay, what is the one thing that you would tell leaders today DATE and business leaders? How do we transition Faster PERSON than what we are now because we're at real risk of missing our targets. Oh, so that's really simple. Do you stop Funding you stop subsidizing you stop Using Right? Hundreds of billions of dollars MONEY getting ashed. Push down Now we know let's take action. It's practical. It's implementable. If we do it now is there going to be a shock to the energy system is there going to be a shock actually to economically and is it worth you know not talking about transition just going from A to B. It's fantastic person A to B's the solution let fossil fuels do what fossil fuels do just burn their cold burn their oil burn the gas at least they're pumping up carpet and methane into the atmosphere Honestly. Well, not that honestly. So, don't mention me thing which is 90 CARDINAL times worse. Yeah. But at least the carpet is being done honestly. Encourage the Green Heights GPE sector to come in really fast. Okay, it's there. There's there's renewable power all over the world. We now know how to make electrolysis much cheaper. 20- Does it need to be cheaper than oil and fossil fuel for it to be viable worldwide? Well right now is okay so let's just swallow that bit of financial data Right now is cheaper And it's getting more chick it's it's great You don't have enough of it. Right, to power the world. That that's only because We haven't had policies to support We had policies to support it 510 years, ago DATE , it would be everywhere you'd see the global warming budget start to come down. Yeah. Now, we've got 5 or 10 years DATE to make a huge difference. Honestly that's all over the world. Please check now okay We now know it's here and it's here to stay it's everywhere. Coming up on the program the hydrogen revolution will speak with the CEO of Italian NORP utility firm snam about his new book and why he thinks green hydrogen will be competitive in just 5 years DATE Plus, how are airlines working to become more sustainable? We'll look at how airbus ORG plants to step up in the climate fight. This is Bloomberg Green PERSON .
From Bloomberg ORG 's World headquarters in New York GPE I'm Kaylee Lines PERSON and this is Bloomberg Green PERSON What will the world look like in 2050 DATE will global temperatures have stabilized electric vehicles be abundant and solar and wind power homes around the world according to Marco Alvara PERSON the CEO of Italian Energy Company Snam ORG that vision of the future could be Reality. And he says that hydrogen will pay its way. As he tells it in his new book, The Hydrogen Revolution WORK_OF_ART , Alvarez PERSON moment of reckoning came in November 2018 DATE . When he tasked the snap scenarios team was studying how Europe LOC could reduce its COtwo ORG emissions to oh by 2050 DATE . Looking through the results Study Alvara ORG said he was struck by how much hydrogen was in Europe LOC 's energy mix buy that year DATE beyond the abundance of hydrogen the stand model also predicted that it would be the cheapest form of decarbonized From any sectors and that it could be cheaper than today DATE 's prices for oil coal and nuclear power. Are Maria PERSON today I spoke with Alvera ORG at Cop 26 CARDINAL . It's happening all very fast. We see the cost of hydrogen coming down a lot. Hydrogen ORG will play a big role in the energy mix. I don't know if it's gonna be 15 or 25% PERCENT of the fully decarbonized energy system. But it's gonna be big. Call sir coming down and people are waking up to the fact that it's the only way to decarbonize certain sectors. So called hard to a Hydrogen 2004 it was costing a $ 1000 MONEY per mega an hour 2016 DATE 100 today DATE 100 CARDINAL we see it going down to 50 CARDINAL in 5 years DATE time and to going down to $ 25 MONEY per mega that hour TIME in Next 10 years DATE or so. Hydrogen ORG here. Hydrogen GPE . Are they keen on this?
What are them telling you when you speak to governments Hydrogen ORG strategy which is very clear and several member states have the same chili ones to expert a lot of hydrogen China GPE 's big Hydrogen so I would say the world is now really focused on this because it's the only way to store energy for a long period of time economically is to convert it into either a liquid or gas. Hydrogen ORG eventually and so compared to oil and gas which are concentrated in few parts of the world. It's gonna be very democratic from that point of view. So, every sunny place, every desert, every ocean wind, can be turned into hydrogen that we can put on ships in pipes and ready start trading it around the world. So, it's gonna happen a lot faster than a lot of people think What is that in time? Before the end of the day DATE Hydrogen GPE development, a lot of renewable development in both countries. The Indian NORP announcement was incredibly On 23rd DATE . He announced the big big commitment to get the 50% PERCENT price by it. They would make it so explicit. Hydrogen GPE . Perhaps the diplomats are working on this but we haven't really seen the leadership. It's gonna be industry I think China GPE has committed to an at oh which is very important at the G 20 ORG China GPE was clearly behind the one and a half degrees QUANTITY so I think a lot has been achieved between the G 20 and and Cop PERSON and I think what's really important is to see in the coming years DATE how quick it's in our hands to make part of this happen in 5 years or it could Already committed what's missing is really the projects and that's where companies like us step in. Marco Alvara PERSON CEO of Snam GPE there speaking with Armaria GPE today DATE Let's turn out to the aviation industry. It's a Tribute to global greenhouse gas emissions and it's Pressure to change that. In October DATE , the International Air Transport Association ORG , a tree body representing Approved a target of achieving net oh missions by 2050 DATE to achieve that many airlines in the US GPE and Europe LOC are looking to buy sustainable aviation fuel made from renewable sources like used vegetable Initiatives NORP like these are pushing play makers to come up with some radical new aircraft that will eventually cater to our growing app For travel without hurting the environment. We took a look at how airbus ORG the world's number two CARDINAL aircraft manufacturer is stepping up to the challenge. How long until we can fly emission free It's more confident by the day DATE it can be done by its 2035 DATE target The physic works high origin technologies are not new. They are used in in other sectors. We use them in space on our rockets and we don't need the rules of physics to change to be able to use high origin on our planes. So, every day we become more confident but we think we need to have a plan. We need to have the the right fuels, the high And we need the regulations to be ready so we really need the the work and the collaboration of many people on the globe to make it happen on time. But it could be a long way to until green passenger jets go mainstream larger air
Many people are on the globe to make it happen on time. But it could be a long way to until green passenger jets go mainstream Globally until about 25th Cut their carbon In a long term meeting the ambitious plans for so called green hydrogen means building a giant industry almost from scratch to make that happen British NORP airline easy jet as among those saying governments need to get involved and fast Aviations emissions over the last three decades DATE leading up to the pandemic grew by about 80% PERCENT to over one CARDINAL gigaton and that's projected to double by 2050 DATE . According to Bloomberg NEF PERSON about half of the airlines with the largest global market share have set oh targets by that same date nearly three decades DATE away Coming up from blue sky projects to the bottom line we'll speak with our Bloomberg NEF PERSON expert Meredith Annex PERSON and dig into their models Hydrogen GPE fits into the future energy mix. Is Bloomberg Green PERSON ? Bloomberg PERSON 's world headquarters in New York GPE . Bloomberg PERSON any of hydrogen specialist Talk PERSON more about how hydrogen could change the energy landscape. So, What place do you think hydrogen is likely to have in the future energy mix globally? Hydrogen this incredible solution for us as we look to decarbonize because it's a perfect solution in areas that are hard to electrify. So, where we like to think about hydrogen playing a role, it's in things like heavy industry, especially where you need a feed stalk as well as energy source Transport maybe even shipping an aviation. That sounds great that it can be used for such diverse industries. At the end of the day DATE though, how much is this going to cost Well that's the amazing thing about hydrogen because Significant cost in the future. When we're talking about clean hydrogen we're usually mean green hydrogen produce from renewable electricity and in that case Hydrogen GPE is almost as cheap as the renewable.
So when we're talking about clean hydrogen we're usually mean green hydrogen produce from renewable electricity. And in that case So if you're in a place with really good renewable resources you'll be able to have cheaper hydrogen but even in places with less good resources we think that hydrogen can be cheaper than a dollar per kilogram. Which is the price of unabated hydrogen today DATE . And around $Eight MONEY per one 1 million CARDINAL BTUs for those who prefer to think in energy units. And that can be changed anywhere in the world by 2015 DATE , we believe. Alright, so let's talk about kind of the pros and cons list. I don't know where cost fits into that but what are the advantages to hydrogen over other renewables and then what are the drawbacks? Yeah main advantage is the fact that hydrogen can serve rolls that electrons struggle with and that's things like seasonal storage for instance or just anything where you need to store ability where your electrons are harder to store hydrogen is gonna be easier. That also leads to a downside though because hydrogen is less energy dense than the usual things that we use for storeable energy today like coal or oil or natural gas. So, you will need more volume, a storage to handle the same amount of energy Let's talk about the viability as well and how it may differ in different geographies. What is your view on that? Yeah. So, for green hydrogen again from renewable electricity, Places with the best renewable resources things like Latin America LOC or the Middle East LOC even Southern Europe LOC have really really good potential for producing hydrogen and then when you're looking at blue hydrogen which is produced from natural gas or coal with carbon caption storage we do see that becoming more expensive than green hydro Where you've got good geological storage for the carbon as well as ample natural gas that's quite cheap. Alright, great breakdown. Thank you so much to our Meredith Annex PERSON . Our Bloomberg PERSON , NEF ORG , hydrogen specialist, and of course, you can get more from the NF ORG team on the terminal and online and they've recently done a podcast called hydrogen 101 as part of it switched on series. So from iron or tightens pivoting to cleaner energy to talk of a hydrogen revolution that's it from this week DATE 's edition of Bloomberg Green PERSON we'll be back next week DATE with a deep dive into the state of electric And you can keep the conversation going by following us on YouTube ORG , Instagram ORG , and Twitter Climate PERSON . From Bloomberg PERSON 's world headquarters in New York GPE and this. Markets, headlines, and breaking news 24 hours TIME a day@Bloomberg. Com, the Bloomberg Business app ORG . Bloomberg PERSON .
You're a 278% PERCENT . Activist investor down lobe says he is acquired a stake in Walt Disney FAC calling for sweeping changes of the world's largest entertainment company Disney ORG shares up now by two CARDINAL . Four% activist investor Elliot PERSON management has taken a large position in cardinal health this according to the Wall St Journal ORG cardinal Up now by just about one CARDINAL . One%. Again, recapping the Dal, the S and P Inez Dack PERSON are all advancing S and P up now by 13 CARDINAL points again there of three CARDINAL tenths of one% ORG . I'm Charlie Palette PERSON . That is a Bloomberg GPE business flash. This is Bloomberg PERSON business week inside from the reporters and editors who bring you America GPE 's most trusted business magazine plus global business finance and tech news as it happens. Bloomberg PERSON business week with Carol Messenger PERSON and Bloomberg Live PERSON from studio yes we are streaming on YouTube ORG it is another Monday DATE this 1 august 15 2022 Katie Graffeld PERSON I'm just calling Tim PERSON stand up and said don't bother I got Katie PERSON Senior markets reporter she is in the house host of ETFIQ ORG on Bloomberg TV ORG if you missed it it was today DATE check it out online cuz it's everything you wanna know about World of ETFs ORG . Speaking of the equity market, so risk trade in stocks is back. Didn't we get some week DATE economic news from the US GPE and China GPE ? Looking at today DATE 's trade. Everything is awesome. Alright, we're also gonna talk about the Bloomer Big Take FAC . It's on Wells Fargo ORG and it's mortgage empire. We're gonna talk about another company in the news Disney on activist investors saying, we can make you more magical, magic kingdom. I was so interested to see this because Elliot PERSON , for example, has made so many ways. It feels like activists invest Is on the rise. It certainly is. We're gonna get into that. We're also gonna talk about the work from home revolution. Turns out it turns out to also be a trap for women. First ORDINAL up though, let's get to the markets and the market drivers report. Adheres your business week agenda just met in the house equities reporter up Bloomberg News Vince Ignala Global Mac ORG Strategist writing about the fed ORG and housing he is on the phone from White Plains FAC New York GPE just kick it off yeah so looking at the equity markets today virtually unchanged looking at the S and P 500 slightly higher but obviously pairing those losses that we saw marginal losses earlier this morning TIME taking all the world was kinda freaking out right Second ORDINAL largest economy and what that could mean especially with the fed ORG is this is where bad news is good news especially for maybe the US Right? Talking about that especially the last few weeks DATE with the different data points that have been coming out but I mean just looking underneath the surface for the S and P 500 CARDINAL energy leading declines down about two% ORG for that sector but obviously that has a correlation with what's happening with oil prices and that has to do with those concerns that are going on with China GPE but then looking at some of the leaders staples utilities more defensive type oriented sectors Technically in the staple sector but also here from Target GPE and Home Depot ORG in the next couple of days DATE . That's gonna be really key to hear this strength that the consumer and especially earnings growth moving forward in their outlooks. What Katie PERSON 's building is It was for her host of Home Depot ORG . Seems like it's been more enduring there. Exactly. Yeah. I'm not so sure I would expect a dollar to retain these games in the next year DATE or two CARDINAL of stocks still kick up more or less that interest correlation has held in today DATE 's broken down a little bit but Like Hey feels like it's still there to me I think what we're really seeing is and you know despite what the Fed ORG said governors and presidents and such continue to say I think we're we're looking at the market pointing a thing at the fad and saying we'll write you wrong rolling the data is rolling over so terrible empire numbers this morning TIME another Give us a hint They were thinking about out there
A horrible set of housing numbers. We get more housing data tomorrow DATE and we get retail sales on Wednesday DATE and the third minutes TIME may be give us a hint. Data continues to to plummet. And retail sales follows badly. I I just don't see how they go. I mean they've taught themselves in September DATE . I don't see how they go any other golf after that. I think they have to stop. What you talk about the terrible or another batch of turbo housing data. Use home Home building stocks are down about one% ORG today DATE 's trade but they've had quite a run in the last 3 or 4 days DATE the importance between the connection between the fed ORG and housing. Well, I mean, you know, if you look at what happened in 2003 DATE , there was a classic speech that Bernaki LOC gave her an interview where he basically said Greensband PERSON , excuse me, I don't understand why Or taking out these six CARDINAL home loans with rates so low they should be taking a variable loans Housing market. You know, if you look at, if you look at the interest rate moves from 2003 DATE to 2007 and you're looking at the moves now and what it's doing to housing, it's having the exact same effect. I'm not saying we're gonna have a financial crisis or or Housing Housing ORG shows at the fed ORG is overdoing it. Absolutely and I think that's the that's the consumer telling the said that they're over doing it. Most people feel they're wealth in their home actually not really in the stock market. Across the country. And when you start to see you know home equity start to a road. When you see mortgage rates starting to rise. There's a lot of fear out there and I think that's what's driving the lower sentiment From Hong Kong GPE to And he's like, oh my god, it's so expensive. Exactly right yeah. Global newsroom but before we get, you know, to the feds September DATE meeting, we have to live through a week of some pretty hefty retail earnings Jess ORG . Walmart kits is off tomorrow DATE . What are we expecting to see out of the sector? So, that's gonna be obviously huge name there and obviously the health of the consumer and Because they've already came in at the end of July DATE they had already cut their profit outlook moving forward as well as target early in June DATE they had already slashed their guidance as well and target for instance I mean they've had a big inventory issue so that's gonna be key because it's interesting if you look over at Macy ORG 's they've had a better time managing some of those inventory hurdles but then specifically with Guidance ORG at the end of July DATE . It's gonna be interesting especially since we've seen those recent CPI reports like last week DATE and that debate Whether or not we're at peak inflation or not it's gonna be key to see what they're seeing with the consumer and how the consumer is feeling right now. Yeah, I will certainly see how it plays out in the investor sentiment. I mean, I'm just looking at. It's about two and CARDINAL a half percent of the data and it's about. Five%. I'm talking about Walmart ORG . IBS and P 500. So, just in terms of it's power to impact maybe the trade. Alright, we gotta leave it there. Just Thank you so much. Equities reporter at Bloomberg News ORG . Check her out at Jessica Mitten PERSON on Twitter PERSON and of course her thanks to Vince Cigarella PERSON . Global macro strategist at Bloomberg News ORG on the phone from White Plains FAC New York GPE saying fed ORG enough is Alright ORG , let's get back to world the national news. She's in DC GPE . Thanks Carol Senators PERSON are pushing for more details about the content of the document cease last week DATE at Mar a Lago Bloomberg PERSON 's Amy Morris PERSON has the latest from Washington GPE Members of the senate intelligence committee ORG made a bipartisan request for those documents senators Mark Warner PERSON a democratic chairs Vice chairman made the request in a private letter yesterday DATE to the justice department ORG in the office of the director of National Intelligence ORG they asked the Cease ORG to provide the panel with the documents and a quote assessment of potential risks to national security as a result of their mishandling in Washington GPE I'm anymore as Bloomberg PERSON radio Rudy Giuliani's PERSON lawyer says Lawyers say they've been told Giuliani PERSON is a target of a criminal investigation into possible illegal
Rudy Giuliani's PERSON lawyer says they've been lawyers say they've been told Juliani PERSON is a target of a criminal investigation into possible illegal attempts by then President Trump PERSON and others to interfere in the 2020 DATE general In Georgia GPE . Also today DATE , a judge says South Carolina GPE Republican NORP Senator Lindsay Graham PERSON must testify before Georgia GPE grand jury looking into that possible interference Graham PERSON had previously said he was immune to such testimony due to his position as a senator. Well, when it comes to climate change, Americans NORP are convinced that it is happening but fewer of them are willing to do anything about it and a new AP Nork Center FAC poll found most people like Desmond Aidel PERSON And Indiana GPE banker feel they cannot do much to affect climate change I could swap to a bike right now and only bike everywhere and I really don't think anything would change as far as like how humans are affecting climate change the poll also found climate change Is not mentioned as a priority by many Americans NORP . Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take I Nancy Lyons Alright, Nancy Lyons PERSON , thank you so much, Nancy Lyons PERSON in our 99 one CARDINAL newsroom in Washington DC GPE . Carol Master-Law PERSON , Katie Griffelton PERSON , we'll be back tomorrow DATE right here on Bloomberg Business Week ORG . This is I believe our most red story on the Bloomberg PERSON in the past 8 hours TIME . This is what folks are reading in the financial community. Hot New York City Brokerage GPE They rent places, right? Real estate. You see kind of their listings all over the place. Apparently, they're bracing Katie PERSON for a brutal housing slide. And it's important. They didn't generate an annual profit in the latest real estate boom. So, really now they're facing a lot of pressure to try to reign in their cost while continuing to grow and just for some history It's been more than one 1 billion dollars MONEY to become the go to home seller in New York Miami GPE and Los Angeles GPE that's probably why you've seen their ads everywhere right exactly and so compass as we mentioned has yet to generate an annual profit back in June DATE company laying off 400 CARDINAL Poise that he equated to 10% PERCENT of its salary staff and it also signal that further cost cutting measures could come now as Can prepare us to brief investors we're talking about the Robert Raffkin PERSON right? Yeah yeah thank you for this it's really important Yeah so as he gets ready to brief investors on the company's second quarter DATE earnings he's gonna have to really convince them that a company that couldn't make money in the hottest housing market ever can turn a profit as US GPE housing cause it's a great question if you can't do it when things are really hot They're white. Open door technology have all warned about this housing pullback and that marking condition Talked about when the fit starts to raise you know rates you see it first ORDINAL in the housing market and then of course there's an impact I think Arguing that the because of the housing slowdown we see but many would argue inflation still really high. I know and it's definitely felt throughout the component to be look under the hood. Alright, lots more to come right here on Bloomberg Business Week ORG . This is Bloomberg PERSON .
Markets headlines and breaking news 24 hours TIME a day@Bloomberg. Com the Bloomberg Business app ORG . I'm Charlie Spot PERSON gold now down $ 24 MONEY a ounce down one. Four% Three and a half percent DATE WTI right now 8885 DATE so an update for the US GPE stock market I'm Charlie Pellet PERSON that is a Bloomberg GPE business flash Kick PERSON off to the clothes Bloomberg PERSON 's comprehensive cross platform coverage bringing you inside on what to watch ahead of the US GPE market close starts right now And a very good afternoon TIME everybody welcome to the kick off to the clothes Carol Master PERSON and Katie Grifeld PERSON in from my co host Tim Stanivac PERSON we welcome our TV colleagues Caroline Hey PERSON we did it Carolina GPE , Taylor Rick PERSON , Shanelli Bosic GPE , walking you through the key things you need to keep on your mind as we work towards the closing bell and guys, what do we have on our radar? We've got the world's two CARDINAL biggest economy slowing down Investors continue to buy.
Towards the closing bill and guys what do we have on our radar we've got the world's two CARDINAL biggest economy slowing down 13 CARDINAL Filings are showing up and checking things up and you add it all up Carolina GPE and investors continue to buy stocks I Interesting that they've managed to power high even though we've had this wall of worry that gets over higher when you're looking at the economic data perspective. The fundamentals of China GPE , the funda Of ORG the US GPE but the S and P 500 managed to call it back into the green after four straight weeks DATE of gains we're seeing another three tenths of percent added on the S and P another 410 percent PERCENT added on the Dow Joe's ORG industrial average General big tech helping this market push up but small caps they're underwater on the tailor off by four CARDINAL points you see some under performance there are Carolina GPE Is you take us through the majors I'm gonna kick us off on some of the key things we wanna watch as we get off to the closing bell and count you down and really snowy for me it is all about the economic data that we got this morning TIME the Empire GPE manufacturing data and looks second ORDINAL worst decline on record that is the bar on the bottom of the screen the worst that we've had since about 2020 DATE and really on the top you see big collapse here from negative 31 DATE from positive 11 CARDINAL consensus here was for five and I think sort of Could be a one CARDINAL off. They're really gonna Be looking at some of the other regional data as well to see how much of a trend this really is. Yeah, we have to watch all those data points Time ORG like this cuz when you have some positive data on inflation, you have some really negative data from businesses here, Carol Yeah PERSON , absolutely. Well, what's interesting is Taylor PERSON talking about some disappointing economic news here in the United States GPE . Well, overnight, we got disappointing economic news from China GPE . Mike McGee PERSON saying we've got two CARDINAL systems, one CARDINAL result, both US GPE and China GPE are slowing down. For China GPE overnight TIME , industrial product, retail sales, and fixed acid investment, all coming in weaker than expected art chart Now on TV and for all of you on radio shows the moves in chinese NORP industrial output retail sales in China GPE and show how that has brought down overall Chinese NORP growth way down from early 2021 DATE not surprisingly we did see the Central Bank ORG in China GPE cutting interest I mean it was a shock to the markets but tell it we're expecting maybe even more rooms because it was kinda slight the important key take away from me is that you've got the two CARDINAL largest economies in the world slowing down I don't think you wanna guess My queue take away was what a 10 year DATE China GPE bond that moved three CARDINAL standard deviation wait Taylor PERSON talking It's important. We love it when she talks technicals. Let's talk a little bit more on the technical front because maybe that's what's driving retail investors. It ain't a fundamental story. When we're looking at bed bath and beyond which is a stock that is currently continuing to do well, even though we see this bearish concerns about the economy in China GPE , the economy in the US GPE . We currently seeing up more than 150% PERCENT The last month or so DATE they've added they're now in a one 1 billion dollars MONEY valuation even though the company is mad and concerns needing more money on the deck and this is as we really start to see maybe the meme stocks gonna hold we see retail investors getting back into tech names getting back into Certain levels that we were back in the mean frenzy of 2021 DATE cows. I don't even know what to say but I do have five CARDINAL words Caroline ORG , 43% PERCENT of the float is shorted on bed bath and beyond. Alright, that's more than five CARDINAL words. But I mean, it's just a big short position. So, you wonder how much that comes into Katie PERSON . I feel like I wanna blame the fed ORG somehow but in any case, what I'm watching of course is ETF flows because you did see an interesting moment of risk appetite. If you look at the JP Morgan PERSON equity premium income ETF, this sort of is a safe place to put your cash sort of collect some yield there. When markets are going, hey, wire, this fund 87th street days DATE of inflows. Finally, the fever has broken. You saw a big outflow on Fridays DATE . Just sort of speaks to people are feeling a little bit Comfortable in stocks right now. That's where they can actually go to generate some alpha. They don't need necessarily that safety anymore. Yet we still have such advocated market. We still have a JP Morgan PERSON that says go long. We still have a Morgan Stanley ORG , Mike Wilson PERSON that says, this is still we're going back to a bear market. We're still just in a bear market rally. It feels as though this optimism amongst certain invest It's amazing considering someone that tells the two CARDINAL cities that we have on coming on deck from the analysts and strategists. And what that optimism is coming from Carolina GPE .
Optimism among certain investors. It's amazing considering some of the tales of two CARDINAL cities that we have on coming on deck from the analyst and strategist. And what that optimism is coming from Carolina GPE . So exciting. You have to watch this Steak PERSON today DATE for example that Dan Lobe PERSON disclosed at third ORDINAL point of Disney ORG activists really heating up in a big way here asking for big big changes in a I just reported pretty stellar earnings. He's asking them to consider separating from of course it's price asset their ESPN ORG . We have to watch mother stocks Amazon ORG alphabet. Because these are other big names that are coming up in these big 13 CARDINAL Filings ORG . These big hedge fund filings but there are also a lot of safety trades, treasuries, and gold. We have heard Jets now from Michael Burry PERSON for example and what he is saying reflecting in his 13 CARDINAL F's is that you know He's selling more than he's buying. He's a pretty big bear here. But when you're looking at Tyro PERSON , you are seeing them change up their positioning too, adding some new buys, after what has been a tough, tough quarter. Yeah, let those 13 CARDINAL F Getting PRODUCT an idea of what the bear got hedge funds are doing and the big investors in terms of what they're thinking. I love the Disney one because A blockbuster earnings looking to maybe even shake it up even more. Alright, that does it from now. We'll be back more in less than an hour's TIME time. We're gonna talk about no real repeating had to say about the fed ORG , our countdown to the clothes, just about 30 minutes from now, and then don't miss beyond the bell at the market clothes, our team back at 4 PM Wall St TIME time right here on Bloomberg PERSON . You're listening to Bloomberg GPE business week with Carol Messer PERSON and Bloomberg PERSON Quick Takes Tim Stenovic PERSON On Bloomberg PERSON radio. And you are listening and watching Bloomberg Business Week ORG on this Monday DATE it is August 15 DATE Carolmaster located For you today DATE . I'm really excited to dig into the Disney sort of shake up. I mean, what what do you wanna shake up? It seems like things are going pretty well. I know, I know and I'm interested about like he's pushing for an ESPN ORG spin off. Yeah. Part of the Disney story has been just having all of these incredible brands under one CARDINAL umbrella and then crisscrossing them across the Disney University ORG . Yeah, so really just excited to dig into that conversation This isn't the first ORDINAL activist investor we've seen this year DATE . Exactly. Alright, more to come.
Broadcasting live from the Bloomberg NORP interactive broker studio in New York GPE Bloomberg 11 three oh DATE to Washington DC GPE Bloomberg PERSON 99 one CARDINAL to Boston GPE Bloomberg 1061 DATE to San Francisco GPE Bloomberg 960 CARDINAL to the country serious XM PERSON channel 119 CARDINAL and Alright ORG , this is Bloover Business St, Carol Master PERSON along with Katie Griffell PERSON . She is in for Tim Stenovic PERSON . On this Monday DATE . Hey, coming up with a few things that we need to talk about including what it is, one of the most read stories on the Bloomberg PERSON . It's also the Blue River Big Take. We're talking in Wells Fargo ORG . Yeah, this is a great scoop. It's a it's cool cuz it's an ex But it's also a feature. Hannah love it. It does it all. Yes. So we're gonna get to it in just a moment. First ORDINAL up though back to your stories and I'll look at the trading day. Hey Charlie Palette PERSON . Hello there.
Exclusive but it's also a feature and I love it. Does it all? Yeah, so we're gonna get to it in just a moment. First ORDINAL up though, back to your top business stories and I'll look at the trading day. Hey, Charlie Palette PERSON . Hello, there. Trading law right now Wells Fargo ORG down by about 410 CARDINAL to one% ORG based in San Francisco GPE stocks higher across the board with the SNP ORG and Asdank ORG they are all gaining back to work Monday DATE we have got stocks advancing S and P up 13 CARDINAL now again there are 310 CARDINAL to one% One 10th of one% Tumbling by two CARDINAL . Nine% west texas intermediate crude oil down two CARDINAL The barrel to 89 44 CARDINAL stocks higher megacaps catching bids in his digest week DATE data on New York GPE manufacturing and the Chinese NORP economy it is a busy week DATE for retail earnings with the likes of Walmart Target Home Depot ORG and Lowe ORG 's reporting this week DATE and Wednesday DATE we get data on retail sales Consumers are still spending despite headwinds. The leader market has remained very robust. They still have income flowing in but they're apprehensive about what comes next for the economy. So, clearly the surveys have shown that cons You know still very solid spending trends. Walmart will be among the companies reporting earnings tomorrow DATE morning target reports on Wednesday DATE Home Depot ORG shares today DATE they're down by two CARDINAL tenths of one% ORG shares of Walmart they're up six CARDINAL tenths of one% ORG target up now by seven tenths CARDINAL of one% Charlie Pellett PERSON that is a Bloomberg GPE business splash. Pellet. Well, as we mentioned, we did wanna get to the Bloomberg Big Take. It's also among the most red on the Bloomberg Tay FAC . Bloomberg PERSON take by the way is our editorial team saying, folks, you gotta read this story and it's a Bloomberg GPE exclusive and it is about the Big Bang probably the most associated Katie PERSON with the US GPE Mortgage industry. Big time of course, we're talking about Wells Fargo Empire ORG of course after waves of scannel scandals Hannah PERSON you join us on the phone now basically walk us through the premise of this big take and how we got Year. Hey, yeah. Thank you so much for having me. So, as you mentioned, like when you when you think Wells Fargo ORG , you think the biggest US GPE home runner like that was their whole thing for a number of years DATE , right? Coming out of the financial crisis. In 2008 DATE , a lot of the big banks who had dominated the space prior to the crisis. Pulled back Big way and Wells Fargo ORG took the opposite approach and said no we're gonna really dig in you know at one CARDINAL point they were Turning out one CARDINAL in every three CARDINAL home loans in the US GPE and they were aiming for higher than that they're aiming for 40% PERCENT market share so that was that was then and then you know since then we've seen the rise of not make mortgage lenders like quick and stuff like that not the Wells Fargo ORG has had a lot of issues some of which has been in it's mortgage And so now under Charlie Sharp PERSON who has been the CEO for almost 3 years DATE they are making plans to shrink in mortgage Is the mortgage business that are two CARDINAL Wells Fargo's ORG top and bottom line? You know, that's a great question because it's less important today than it used to be. So, the history going back before even in 2008 DATE , crisis was that they liked mortgage as a way to counterbalance you know, lower net interest income from lower interest rates and so they would get feast and lower rates when people wanted to refund, And so it would be a counterway to that but Company ORG has gotten a lot bigger so it has become less ramen also it's a more competitive landscape today DATE than it was you know one well so
The company has gotten a lot bigger so it has become less relevant. No, so it's more competitive landscape today DATE than it was, you know, one well since Do we want it every three whole months? That's what I wanted to ask because that's such a crazy stat. One CARDINAL of every three CARDINAL home loans in the US GPE with Wells Fargo ORG kind of planning to step away here. Where does that leave the US GPE mortgage market? Yeah well until they certainly aren't doing one CARDINAL in three CARDINAL today and it'll be really interesting to see you know they're still in the process of making plans of where they're gonna pull back you know I've I've wrote about their correspondent lending which is when they fund mortgages that are made by other firms and then servicing the like billing and collection Mortgages as as places where they're looking at but you know a lot of that is still being sketched out but it will be really interesting to see you know when all of a sudden done where Well Fargo ORG fits into the Greater Mortgage LOC picture hey This is just Tired of being criticized For you know rejecting refinancing for black homeowners for doing other things and being fine I'm just tired of this and if I get rid of this business I'm no longer on regulators radar Yeah that's also super interesting question because a lot of the Big Bang You know Bank of America ORG did I wanna say over 100 1 billion of originations in a single quarter DATE during the career like right after the crisis and they were down to less than a 10th CARDINAL of that by 2018 DATE . So a lot of these banks already kind of concluded that remember they were like tens of billions of dollars MONEY and signs. I think it actually gone over 100 1 billion total The bank's behavior leading up to the crisis causing the crisis and was so well here is kind of you know in in something could the last big bank to come to this conclusion but also in recent years DATE you know they have been very scandal written that's why Charlie Sharp PERSON took over 3 years ago DATE and the mortgage business has been A key You know, trouble spots and then. And Hannah PERSON , we have about 40 seconds TIME left but you write that shrinking even in a downturn will be complicated. Tell us about some of those hurdles. Yeah so How many is worse the value of the loans that they hold will go down so that just makes it harder to You know for them to Potentially so about we'll do whatever they're gonna do Everyone is climbing to get so fast and things like that It is a great story. It does also make me think about, you know, of she talked about how to talk about more competition today DATE in the mortgage business and all these upstarts, right? That have given Owners or perspective homeowners so many different options. Yeah. When it comes, when it comes to either mortgages or home equity. It is the Bloomberg Big Take. It's among the most red on the Bloomberg PERSON today DATE and it's all about Wells Fargo ORG , shrinking the biggest US GPE mortgage empire after a bunch of scandals over the last few years DATE . How to love it? She is finance At Bloomberg News ORG check her out on Twitter PERSON at Hannah Levitt PERSON and she of course joining us on the phone from New York City GPE . Right now, we do wanna get another check and update on World National News ORG for that. Back to DC GPE , the nation's capital in New Nancy Lawrence PERSON . Hey, Nancy PERSON . Thanks, Carol PERSON . It is unclear if Will reveal any more about its investigation into classified documents found during a search of former President Trump PERSON 's moral logo estate but Bloomberg GPE Washington GPE correspondent Amary Hordurn Ports PERSON lawmakers want some details Along with vice chair Marco Rubio PERSON obviously a Republican NORP and a Democrat NORP asking the DOJ ORG and the office of the National Intelligence Director ORG for the contents of what was in these documents 11 CARDINAL sets of classified material Ray Hordur PERSON and Trump ORG has said any documents taken from his resort Declassified but for classified documents that involves a process that includes approval from other agencies. Lindsay Graham PERSON says he plans to appeal today DATE 's ruling or acquiring him to testify before a grand jury in Georgia GPE . The Fulton County GPE District Attorney is investig Alleged ORG interference in the 2020 DATE presidential election attorneys for Rudy Giuliani PERSON say they've been told Giuliani PERSON is the target in that investigation While House ORG Republicans NORP are out with this skating report on the US GPE withdrawal from AFL ORG
Attorneys for Rudy Giuliani PERSON say they've been told Giuliani PERSON is the target in that investigation Republicans NORP are out with this skating report on the US GPE withdrawal from Afghanistan GPE it was 1 year ago DATE today US GPE troops left the country congressman Mike McCall PERSON is the top republican NORP on the house foreign affairs committee ORG Cherry PERSON pics information and provides inaccurate characterizations Global news 24 hours TIME a day on air and dawn bloomer quick take powered by more than 2700 CARDINAL journalist and analyst to more than 120 CARDINAL countries I Nancy Lyon Alright PERSON , Nancy PERSON , thank you so much. Nancy Lyons PERSON in our Washington DC GPE news around 99 one CARDINAL newsroom in the nation's capital. So, this definitely popped up on my radar today DATE . Carol Master PERSON on Katie Greifield PERSON in for Tim Stanovic PERSON on this Monday DATE and the headline on it. Yeah, that will make you probably Google maps regularly miss leads people searching for abortion clinics and Katie PERSON this is based on Bloomberg GPE news doing a news analysis and what they found is that google maps routinely misleading people looking for abortion providers when users type the words abortion clinic into the map search bar crisis Pregnancy centers account for about a quarter CARDINAL of the top 10 CARDINAL search results on average across all 50 CARDINAL US GPE states plus In DC GPE in 13 CARDINAL states including Arkansas South Carolina GPE and Idaho GPE where the procedures newly limited five CARDINAL or more of the top 10 CARDINAL results were for CPC ORG 's not abortion clinics. This Bloomberg News ORG investigation it follows does US Supreme Court ORG overturning row the wade and since then 10 CARDINAL states have criminalized abortion four CARDINAL have put time limits on the procedure and in some states including Texas GPE asking someone for help accessing an abortion could lead to legal liability For that person of course that makes google the safer resource but this investigation shows maybe it isn't exactly the best case what it makes me wonder and I'm looking through this story a little bit about In a weather not people are paying like I know that usually comes up right if it's if it's paid it comes up in the search I'm assuming that it's not necessarily but it does you know they talk specifically in the story about Shay PERSON 19 year old DATE college sophomore living in Orlando GPE Florida GPE when she discovered she was pregnant decided to have an abortion she didn't have anyone she could ask for guidance so she search Google for nearby clinic she said she wanted to find someone somewhere close to my partner so Tell him and bring him with me. She said in a recent interview Not so sure that it took her there. And of course she used google because it's the dominant navigation service in the US GPE . It has over 118 1 million monthly DATE users in the country in a 56% PERCENT share of the market among those mobile users. And people use Google big time when it comes to medical situations. This is blooper.
Markets, headlines, and breaking news 24 hours TIME a day@Bloomberg. Com. From Bloomberg World Hankwaters I'm Charlie Pelic PERSON we've got all advancing stocks are rising with megacaps catching bids as investors digest week economic data on New York GPE manufacturing and the Chinese NORP economy let us begin with crude oil because 278% PERCENT . On the tenure 2 year DATE 320% PERCENT . Stocks Across the board. Among the names reporting earnings after the close of trading today DATE 's zip recruiter will also be hearing from Told hims. Again, recapping the Dalby S ORG and Panez ORG all advancing SMP now up by 16 CARDINAL points. That is a game of four CARDINAL tenths of one% ORG . I'm Charlie Pellet PERSON , that is a Bloomberg GPE business flash. Alright, Charlie PERSON , appreciate that. Carol Master PERSON , Katie Greyfeld PERSON here on this Monday DATE . She's in for Tim PERSON 's Denovic. Who's back tomorrow DATE ? And Listening and watching Bloomberg PERSON business week. This story by the way Katie PERSON comes from Bloomberg GPE business week. It's found on the Bloomberg PERSON and a Bloomberg PERSON . Com slash business week. It's about how the work from home revolution We thought it would be a big step to women might finally finally be having it all but as Bloomberg PERSON business we contributor and Peterson PERSON writes it is also become a trap for women so let's see what she has to say she joins us from Lumi Island LOC
Finally finally be having it all but as Bloomberg PERSON business we contributor and Peterson PERSON writes it is also become a trap for women so let's see what she has to say she joins us from Lumi Island Washington FAC hey Anne PERSON good to have you here with Katie PERSON and myself so Was I I feel like this was expected to be the great leveler if you will and it hasn't necessarily working from home played out like we thought for women. You know it's hard because I think like before the pandemic if you would say to Mom's in particular in Henrisexual families if you would say hey what if you could do your job from home You could be there for pick up and facilitate a bunch of other stuff. And you could figure out where work would fit in your own life. And you wouldn't have to commute and you wouldn't have to necessarily like spend all the time putting on work clothes everyday like Would you choose that Hey and I think a lot of people said yes I would choose that it would make my life a lot easier And what we've seen Which is not surprising given the state of different supports in United States GPE in particular right now. Instead a lot of women who are have flexible work options have become a sort of one CARDINAL woman safety net. So they are providing Sort PERSON of support and care that maybe they split more equally with their husbands maybe the school district provided a bit more of or maybe even just like child could care infrastructure provided more of And so there's so many different Combinations ORG that flexible work as a woman could take and it's a beautifully reported piece you say that you've conducted hundreds CARDINAL of interviews with women over the past 2 years DATE so I mean it sort of walk us through the comment denominator because Maybe their spouse is in the office maybe their spouse is home what was the sort of when you boiled all down the common element there? I would say that the people who are struggling the most would burn out right now. Are people to Are working these flexible sorts of jobs where they've Much more control How much time they're spending at home? And their partner, especially in heterosexual marriages, doesn't have as much flex, or is not taking as much flex. And so what they're doing is they're essentially working this full-time job. For pay That they've been working for a long time but then they're also taking on even more of that unpaid labor in home and a lot of that includes workout and called like the mental level right so like keeping the list in their head of all of the different things that have to be happening right now and so they are working on time on their salary job and then also taking up Lot more of that other unpaid labor and that includes even things like oh they don't have enough bus drivers for the school district So I guess that I will pick up my kid every day after school instead of them taking the bus home Something like My kids sick and has to stay home it used to be that my husband and I would rotate who would stay home with him but since I'm already in the home I guess I'll just stay here and my work will be affected and then I'll need to stay up late to put in that work that I missed. So basically it's like what's going on in relationships? So here we are. We've gone through the pandemic. Working from home. Women are like This could be really cool, great, give me some flexibility but still pursue my career and continue to move ahead. What's happening is what's happening internally within relationships where the husband or the partner I guess has gone the male partner predominantly maybe in in some cases has gone back to work and so when stuff happens at home the woman is continue to work from home but also adding on everything else I love there's a picture I'm looking at that looked out at the terminal of like the 1950 DATE 's Sending your kids off to school you know but and she's kinda getting stuck. Yup. If they are making more money right if their job is extensively within the paradigm of the relationship the more important one If they have sex they are still
Hey Making more money right if their job is extensively within the paradigm of the relationship the more important one If they have sex they are still the one who's taking up all of this extra labor And I think it's really frustrating. Because like what is the solution? And something I ask some people. I'm like is there anything that your company could do? A better policy for you and you know everyone Small complaints about how their companies have orchestrated Work policies like there are things that absolutely need to get better but to the person every single person told me that like no this is a societal thing and it's also a relationship thing. And it's really hard to fix. Right. To what I wanted touch on which is where does this go from here to because back to the question you posted the beginning you know if I could tell you you wouldn't have to go into the office put on work clothes you could be at home in these flexible work arrangements I my gut feeling is that a lot Or even with this this burnout this sort of one CARDINAL woman safety net that you described it doesn't feel like going into the office would fix that. Backup care right? What were people doing before? Right? They're they're we had Plan for like oh if the kid gets sick we rotate turned off. And because we both conceive of our job is is equal, right? That we would one person goes and gets that person or like school districts has more bus drivers and really made that a priority So he thinks that there are different ways of You can solve this problem But we're just like instead we're people I think are it's been normalized that women are taking on more and more of this work and if you look at things like the Deloitte ORG study of women in work that the numbers of burnout amongst And then mothers in particular in in office jobs is just skyrocketing and something has to give and a lot of cases they think you have women who are like I can't do it anymore but the only way to make our family work now is for me not to work at all. For me to drop out of the workforce and that's a different problem. Yeah. What? Well, it's interesting, right? Katie PERSON , in terms of Very tight labor market. We talk about, you know, people who are just not coming back to the workforce and you wonder how many, although we've seen some stronger numbers in terms of women. Mm hmm. Yup. But you do wonder, you do wonder how this impacts it going forward. And I really, as Katie PERSON said, Well and beautifully reported story really appreciate getting some time to talk with you and Peter Sim PERSON contributor up Bloomberg PERSON business week on the phone from Lumie Island FAC Washington GPE and this store you can find on the Bloomberg Terminal Bloomberg PERSON . Com slash business week DATE it's All these things from the pandemic maybe not playing out as we anticipated it. I know. I know. At least in this point this peace points out. At least kids are back in school. For the large part, not doing virtual school anymore. So maybe one thing that they can cross off there. What's going on in the markets and update in just a moment TIME
Platform coverage ahead of the US GPE market close starts right now. This is countdown to the clothes just 60 minutes TIME left in your trading session Caroline High PERSON Taylor Rich PERSON Shinali Bassak PERSON all the jokes in here meanwhile we go to our colleagues Caramassa PERSON can he grow We together welcome fully across our audience as Radio ORG and YouTube ORG . A time to dissect what is volumes muted but stocks managing to go higher just Pretty dreary data. Alright, so should we be asking our stocks getting over bought at this point? A story that jumped out at me on the terminal and also a chart. Let's bring it up for a TV audience and I'll talk about it. A little bit for a radio audience. It looks at the percentage of S and Members with 14 day DATE RSI. This is relative strength index. When you're over 70 it indicates an overbot technical indicator. It will be move up. You do wonder whether or not now it's time for a tech Correction right now RSI ORG and the S and P 500 shows that the share of US GPE stocks running hot is at the highest level Katie PERSON in over 2 years DATE so over bought in a big way You can prove that with what we're seeing out of other asset classes. I know 1 day DATE doesn't make a You're looking at the dollar maintaining that bid as well. It feels a little bit out of step. Well at the moment we're seeing what is sort of a market that doesn't know what step to be taking whether we should push on higher whether we think this is some sort of bear market rally on the day DATE though we we decide we're gonna go up four tenths CARDINAL of a percent hasn't been the same across the trading day but on as we edge towards the close we're up 17 CARDINAL points on the S and P we're up 156 CARDINAL points that's four CARDINAL Tense of a percent on the Dow Jones. We're seeing the Nasdaq up and the winning set of benchmarks on the day DATE . We're up six tens of percent PERCENT in terms of big tech and that's really what's pushing us higher across some of the major benchmarks. It's only five CARDINAL points to the upside and rust to 2000 Calls its way back into the green. Three CARDINAL points so Taylor PERSON . Heading to the closing bell more individual movers are going a little bit higher and more individual sectors should only I should say as well moving higher so you're getting a little bit more of a tilt here than we had about an hour TIME Certainly to the upside the big one we just had a great blumber intelligence segment on this the outperformance of the staples you're now a one and then you get real estate intact what drop about six tenths CARDINAL of one% ORG maybe that's what Two. Three% yeah I do wanna bring it to some of these individual movers Taylor PERSON because Do have aluminum which is rebounding to the tune of about 10% PERCENT today DATE after a steep drop
The big lager on the day DATE that sector still down now DATE . Two CARDINAL . Three% GPE . Yeah, I do wanna bring you to some of these individual movers. Taylor PERSON , because we do have Rebounding to the tune of about 10% PERCENT today DATE after a steep drop off on Friday DATE you saw them report I disappointing forecast you did hear the CEO discussing Illumina GPE 's work on the monkey pox virus in an interview over the weekend DATE and again recooping Software ORG . Remember, this is a company that rejected and unsolicited proposal to merge with app 11 CARDINAL . The stock is now down almost six%. Therapeutics PERSON . This is a huge gainer in the Rus 2000 of course you know another benchmark everyone is watching closely up 52% PERCENT on some positive clinical And all of this as we try and digest the macro pitch, the macro picture of weakness being painted in China GPE . The macro picture of concern with the manufacturing data in New York GPE . And I want to shine a light on what's happening across the commodities spectrum. We've gone stocks and I wanna gather Asset to look at what is copper on the downside by one CARDINAL . Four% Alan minimum as well but this is really showing what's happening in iron or and indeed in oil as well really metals and oil been both falling over the last couple of months DATE and on the day DATE certainly we have all currently off by two CARDINAL basically call it three% couple of by one CARDINAL . Four% iron off by Two% as we worry about that growth data. Heard about Grossedo LOC over in China GPE certainly worried about growth data here in the United States GPE do we cut up with David Western PERSON earlier on Bloomberg TV ORG he's of course macro CEO and the Boom Bus LAW . Com co CEO Which gain some momentum after those weaker than expected inflation prints last week DATE Rubini as I said never Things that thinking is a bit crazy. So Market's expecting a peaver in the fat capates next year DATE to me sounds delusional but even if you are at three CARDINAL . Eight CARDINAL we have inflation still well above target around eight% falling on the gradually calling fragrance around sixish you're still negative territory so the fat funds rate should be going Well above four% four and a half DATE to five% my view to really push inflation towards too And then of course there's no rubini earlier on Blue Bar TV ORG with David Weston PERSON also of NYU ORG but this is some of the conversations we've had here right that even though we got weaker than Katie PERSON there's still historically high and it's gonna take a while to bring him down. That print. I've tried to remind that that there's still a lot of wood to chop before we get inflation under control. Don't get too ahead of yourselves. Doesn't look like socks are necessarily listening. They're not buying it. At least for today DATE . It's hard Signal ORG that that gats in terms of being a little bit of Indicator NORP and look at the yields of course falling on the day DATE but the long-term trend as well as we heard from Marky Patel PERSON the top of the two CARDINAL from a 350 CARDINAL in the woes and the pressure that puts on equities Further out the big decline you've had in the old space I've gotta say the question you've been asking all day can we call The end of the bear market into a bowl market a bear market rally I think this is gonna set us up for pretty historic end of the year guys because if Mostly selling out of a stock positions and only adding to a little more while others like George Soros PERSON adding to big tech And yet we also see Andreson PERSON and Harrowitz GPE writing its largest check ever to one CARDINAL single company and guess who runs None other but Adam Newman PERSON The first ORDINAL time around, right? City of California GPE this month DATE and really all about sort of difficulty and how difficult is the build something at the moment and how Difficult ORG . The housing markets. How broken it is. There's not we got so much housing data this week DATE . Hey, here have real estate once again. I've gotta say is he going to face the Mans NORP that everybody else is now facing where you must be profitable Asap. Otherwise, this is
This week DATE . Hey, here. Real estate. Once again, I've gotta say, is he going to face the same demands that everybody else is now facing? Where you must be profitable Asap. Otherwise, this is not gonna cut it. It's for us. Wonder if the paradigm changes even for investors I love that you guys talked about housing in general we continue to see weakness in terms of some of the housing data continues to come out our vincola writing about you know that typically we see some housing declines and then Employment which has been such a strong thing when that starts to come undone maybe then the Pivoting perhaps I don't know Big call. We got housing triple tape coming up after the bow. Alright, nice teas, nice cheese, and we've got more to come and just about, ooh, a little bit under an hour. We're gonna continue our market conversation. Our cross platform coverage on radio, TV, and YouTube ORG beyond the belly will take you down to the clothes on this Monday DATE Bloomberg PERSON radio Purchase this Bloomberg GPE business week Carol Master PERSON Katie Greyfeld PERSON in for Tim Sandovic PERSON on this Monday DATE we will get back to our team I'm looking at the equity market moving up towards the ties right now yeah as we know though a lot can change serving the last hour TIME the last 30 minutes TIME of trading it feels like that's been the story of the summer but yeah definitely a On mood at least if you look at the equity market not so much in the bond market but it feels like those two CARDINAL asset classes have been out of step for a while now. Yeah, absolutely. But interesting to kinda GPE keep an eye on it. I mentioned housing in the connection with employment courtesy of our Vince Signarella PERSON who's got a piece out. And he says, Picks GPE and Valleys GPE in the index for About home builders I guess and housing sentiment pick it in the index precede turns in the US GPE jobs market with about an 18 month lag DATE the prior NHB National Association of Home Builder Indexes Peak ORG was in November of 2020 DATE so you know this is you look across assets Economic data points and markets and we know you know you just look for those connections and I think that's why Vince PERSON continues to be Bearish. Pretty bearish, pretty critical of the federal reserve, but seems like people on both end of the spectrum happen. I would say that as long as the inflation prints continue to be high historically, even though the trend line looks like things are starting to come undone and still there high, why would the fed ORG back off at this point? I know, in this case, it really feels like the Fed ORG is worried about the absolute level. We always hear it's about Outright level there. Yeah, I think that's a really good point. Alright, can you watch the markets as we mentioned equities? Pretty much hovering near their highs of this session. We'll have more on the markets and we're gonna look specifically at one CARDINAL name on the move in particular. We're talking about the Disney Company ORG . Right now, though, we wanna get an update on World of National News ORG for that. Back to DC GPE and Nancy Lyons PERSON . Hey, Nancy PERSON . Hey, Carol PERSON . Members of congress ORG are putting pressure on the US GPE government to tell them what was in the classified documents seized it former President Trump PERSON 's home. Send it intelligence committee leaders have requested an assessment of political risks from the justice department ORG and the director of national intelligence Trump ORG says he declassified the documents but former under secretary of homeland security susan spalding tells Bloomberg PERSON that term top secret alone means you must handle it differently That means that revealing that information was determined at the time to be something that would cause exceptionally great To our national security. Classifying it against the potential damage to a harm to American NORP To our national interest of doing so. Former under secretary of Homeland Security ORG , Suzanne Spalding PERSON , and another development today DATE , Trump ORG says the agents who searched his marlago home took three CARDINAL of his passports when he says had expired. He calls that third ORDINAL world Word from the justice department ORG on whether passports were taken or any potential reasoning behind it if true. Britney Griner's PERSON defense attorneys announced today DATE they are appealing a Russian NORP court's verdict against her for drug possession in trafficking. The WNBA star who was
Britney Griner's PERSON defense attorneys announced today DATE they are appealing a Russian NORP court's verdict against her for drug possession in trafficking the WNBA star who was convicted This month DATE played for a Russian NORP club during the WNBA off season she was arrested at a Moscow GPE airport in February DATE after screeners found vape cartridges with a small amount of cannabis oil in her luggage Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalist and analyst and more than 120 CARDINAL countries alright now thank you so much Carol PERSON Master Katie Greyfield PERSON we've Three CARDINAL stories I wanna get to that to deal with our climate right now and what's going on so let's go to the first ORDINAL one much of the United States GPE will be an extreme heat belt by the 2050 DATE 's so if you think it's hot out there Katie PERSON right now consider the summer of 2053 DATE let's take you there Researchers at one CARDINAL . St Foundation ORG it's a New York GPE nonprofit that studies climate risk they've done in a report published today DATE they predict that in three decades DATE more than 100 1 million QUANTITY Americans NORP will live in an extreme heat belt where at least 1 day DATE a year the heat index it's going to exceed 125 CARDINAL ยฐF Is the top level of the national weather services heat index or the extreme danger level? It's not good. I have to say, this weekend DATE , you know, we're talking. We were both outside a bunch. Enjoyed it. It was in the 80s DATE . To me, it felt like delicious. A cool wave. It was so nice. I compared to the 90s DATE and the the So now I tried to think of 125 CARDINAL ยฐ. Explode GPE . Brought a cardigan out with me somewhere this past week DATE . Has released a free web tool that lets US GPE users search US GPE addresses to determine their heat risk so there's not at least. Alright, we're gonna get Two CARDINAL more stories we wanna get to so rapid round the Rhine River LOC water level at a Keyway NORP point hit a new low risking the transit a fuel and other goods as Europe LOC 's climate crisis exacerbates its energy supply crush we talked about it a lot last week Search the Bloomberg PERSON and Bloomberg PERSON . Com. You can hear more and then we gotta do this. I will leave More than 500 1 million dollars QUANTITY in Russian NORP firms around the time of Moscow GPE 's invasion of Ukraine GPE in a sign of the careful political position the Gulf State LOC has maintained with its opic plus partner It was a lot of energy investments. I would believe so. Kingdom holding, it's invested more than $three MONEY . 4 billion CARDINAL globally since 2020 DATE . So, this is just the latest in around. Printal leads, firm investing in gas prom, Ross Neft PERSON , Luke Isle PERSON , yeah. There you go. Energy. Anyway, check it out. It's a great read. Interesting read right on the balloon. This is Bloomberg Radio ORG .
Markets, headlines, and breaking news 24 hours TIME a day@Bloomberg. Com, the Bloomberg Business app ORG . This is a bloomberg PERSON business flash. From Bloomberg World ORG Hank Waters PERSON I'm Charlie PERSON we've got 43 minutes TIME to go ahead of the closing valve but how the S and P knows stack all pushing higher in fact we're holding close to session highs let's head right over to the first ORDINAL word breaking news desk for today DATE 's afternoon TIME call here Bill Maloney PERSON . Hey, man. Good afternoon TIME . Try that's right. You were stocks in the green. After a slow start, the Dallas GPE currently up 154 CARDINAL points. Sesames gained 19 CARDINAL more than as that is up by 92 CARDINAL . Us GPE 10 year old DATE at 279% PERCENT . Gold is down 23 CARDINAL oil is also in the red and bitcoin is lower by one% ORG among the main 11 CARDINAL SB sectors Energy ORG materials were in the red and leaders to the upside and the visa and proctor and gamble while chevron ORG fell two CARDINAL . Two% and led to the downside. Hey, another news Dow Jones ORG put that Elliot PERSON management has taken a large position in cardinal health and third ORDINAL point has a new In disney after earnings reports ยข10 music reports after the bell lie from the first ORDINAL of breaking news that's gone Bill Maloney PERSON Charlie okay thank you very much Bill Maloney PERSON and the story from the Bloomberg PERSON crossing now Live that is a Business flash. Alright, got it Charlie PERSON . Thank you so much for that update. Well, as you know, one of the big stories certainly on the this Monday DATE is the news out of China GPE . Shocking with another disappointing batch of economic news that we had a Interest rate cut with more on the world second ORDINAL largest economy let's bring in the cohost of Bloomberg Daybreak PERSON eight CARDINAL . Yeah, yeah. Wait, did I tell you something you didn't know? Oh, we were here last night TIME watching the news break, you know, every data point that was released. Industrial output, retail sales, fixed asset investment, all disappointed.
We were here last night TIME watching the news break, you know, every data point that was released, industrial output, retail sales, fixed asset investment, all disappointing, and on top of that, they broke out the unemployment rate, right? Overall, the unemployment rate wasn't as bad as feared but if you break that out and look at Unemployment. Right. Okay. 20% PERCENT . That's astounding. There is just so much negative sentiment right now in the Chinese NORP economy. Even before the date of broke, over the weekend DATE , we had Data PERSON on aggregate financing. Right. It was missed by a mile. It was half CARDINAL of what economist had forecast. So, there is enough money floating in the system right now. Nobody wants it. Let's talk about what this big batch of bad data force the prompted maybe not forced. Well, the data came out after the cut in the medium term lending facility but I guess and and that was unexpected, right? A tent, it was only 10 CARDINAL Delete 10 basic boards With rate cut. Well, because everybody in our survey was expecting it to remain at 285 CARDINAL . So, a 10 CARDINAL basis point cut but it's kind of illustrative, right? It indicates Concern they have about slower growth and this is such a tight rope that they're on right now given the slump in the property market to one CARDINAL thing that they don't wanna do is stimulate to an excessive level again and create another Well, this is where I wanted to go to because there's so, you know, I love to go to the most red and like there's just so many stories on China GPE , different angles, whether it's, you know, restricting more listings here in the United States GPE or is talking about growth but then you had JP Morgan Doug ORG and you talk about housing saying no one immune amid the China GPE property term oil. I mean Talking about what Chinese NORP developers 30 CARDINAL year% and year DATE decline for Jeff Ernie PERSON . But they've taken out mortgages already on these properties Development projects that I have not gone They're not completed and so you've had a boycott of mortgages which goes back to the sentiment issue how we sent them in right now on the mainland Over the weekend DATE and Ikea ORG store. Did you see the footage? I didn't see the footage. It's crazy. One CARDINAL person may have come into contact with a person who was diagnosed with a virus. They shut the entire COVID oh policy has been It's not worked out well and and and I think that's another driver of the eroding sentiment. Youtube sorry for everybody in radio but it's basically people Chinese NORP people trying to and saying hi right? Right. Trying to escape this idea store after officials have tried to lock them in and they're just swarming to get out What? We had another survey that we published over the weekend DATE . We interviewed him when I say we am talking about the people of Bloomberg News ORG . A dozen CARDINAL export managers. No. No. No. No. No. No. No. No. No. It's Collect the royal week DATE . They were talking to exporters in China GPE orders have dried up Is so much concern now about Export demand exports were one CARDINAL of the things in the last round of trade data that really held up relatively well domestic demand is cratered I say that I don't wanna be hyperbolic it's weak but if you look at the currency today DATE it's down right now this is the offshore Chinese NORP you want down I want about one% ORG against Green back and then to confirm everything we're talking about in the macro look at the price of crude oil I mean that's also a kind of Pretty much. Yeah. Pretty much. Well, I wanna talk about bonds specifically because I caught my eye that after this cut by the PBOC, you saw a big rally in Chinese NORP dead. I don't know. Kinda GPE got me thinking. I think we're down about seven and a half CARDINAL Points on the 10 year 266 DATE . POC ORG is easing sort of against their will here. You have every other central bank in the world at this point. It feels like hiking. I think they're behind the curve. We talked about being behind the curve and that's one of the things that I think has been operating you know they've got the party congress ORG in in October DATE and this is she trying to get a third ORDINAL term Which would be historic. Go back to the idea that they're on a tight rope right now
In in October DATE and this is she trying to get a third ORDINAL term which would be historic Go back to the idea that they're on a tight rope right now and so I think from the macro you've gotta believe that the economy is slowing and we used to talk about not only the US GPE but Europe LOC being a driver it's a key market for Chinese NORP exports look what's happening in Europe LOC right now they're dealing with recession probably So can China GPE inc be reliant on the European NORP economy to save it? I know not not so much. It's such an export light economy, right? So, if it's down in Europe LOC and you think about the US GPE where we've talked about the consumer holding up but that comes in what is it mean for China GPE ? How much so is present do you really politically at risk care and Doug PERSON just got about Hey that's a tough call I mean because the polyp bureau I mean this is the kind of the 25 CARDINAL people within the the upper echelon of the Chinese Communist Party ORG I don't know what happens in the backroom. It's such a black box. No, there's no visibility, no transparency. I don't even wanna go out on a limits in in speculate on that. Well, it's a lot cheap. On top of and you guys certainly do it at a day breakage at work. Can you join us every day? Sure. Great. I love that. Thank you. Well, I thought you're gonna come in and talk meme stocks. Right here on Bloomberg Radio ORG
Broadcasting live from the Bloomberg GPE get interactive broker studio in New York GPE Bloomberg 11 three oh DATE to Washington DC GPE Bloomberg PERSON 99 one CARDINAL to Boston GPE Bloomberg 1061 DATE to San Francisco GPE Bloomberg 960 CARDINAL to the Iheartradio ORG . Com. On this Monday DATE what do you think about an ESPN ORG spin off Doesn't really watch sports. I have no feelings but I know a lot of people care. Some thoughts on it. The activist investor. Which we will take it into. Alright first ORDINAL off let's get back to your top business stories he's watching Disney he's watching all of the equity market here's Charlie PERSON They're all higher on this back to work Monday DATE right now S and P up 18 CARDINAL up by about four CARDINAL tenths one% NORP the dial holding close to session highs up 147 CARDINAL now up by 4:10 TIME : to one% ORG now the stack up 90 CARDINAL that is a game of seven tenths CARDINAL of one% ORG now stack 100 CARDINAL index up eight CARDINAL tenths of one% Russell ORG two Turning around from earlier losses the Russell 2000 WORK_OF_ART up now by just about three CARDINAL tenths of one% ORG stocks rising with megacaps catching bids
Russell 2000 turning around from earlier losses the Russell 2000 WORK_OF_ART up now by just about three CARDINAL tenths of one% ORG stocks rising with mega caps catching bids is investors digest week DATE data on New York GPE manufacturing and the Chinese NORP economy again that 10 year old DATE 278% PERCENT . Gold down one CARDINAL . Two% Cross ORG mark global investments and she says despite improving CPI and PPI numbers last week DATE Inflation cannot be ignored. There's wages. Call it from the labor market and financial conditions are actually easier now than they were back in March DATE . Steady rallies since the end of June DATE and an influx of cash into Carnival corp ORG down one 10th DATE of one% ORG and Norwegian NORP cruise line holdings up by two CARDINAL tenths of one% ORG so again recapping with just about 26 minutes TIME to go ahead of the clothes we're at the best level of the day DATE right now Bloomberg PERSON business flash. Alright, Charlie PERSON , appreciate that update. Alright, so dear Bob PERSON , I like your company. Make a few changes sincerely yours download okay that's not exactly what he wrote Close though. Hey portal To Disney CEO Bob Chapec PERSON after taking a significant state of the company and suggesting some changes at the Magic Kingdom FAC Analyst This calling for a spin off of the ESPN ORG sports network have to assume that I can go haven't done this for a reason. Yes. Yes. So Something that has come up so many times Katie PERSON and Carol PERSON are over the the past few years DATE I'm in constant questions about whether it makes sense four CARDINAL ESPN ORG to be spun off just kind of given the secular challenges in the linear TV Business model there's a reason they're not doing it and that reason is cash flow tons and tons of cash flow from ESP and almost four and a half one 1 billion dollars MONEY every year and remember this is almost Percent of you know Disney ORG 's profits so it is a crucial part of their business and one that they're not gonna be willing to let go of their easy Be like an activist investor saying hey apple we'd really love it if you'd spin off the iPhone ORG in terms of sales let me this is just so important to Disney as you said. Absolutely it is a critical part of the business yes agreed there are lots of challenges in the business models especially given that court cutting is accelerating The whole streaming part of the business yes they are having pretty good growth there for streaming they they reported some fantastic numbers just a few days ago DATE they More than if you just look at their streaming portfolio now they actually have more subscribers than Netflix PERSON has But remember streaming is not generating any profits for this company just yet. So, getting that cash flow, getting those four and a half DATE one 1 million dollars MONEY from ESPN ORG , Urin PERSON and It's so important to fund all of that content investments industryming platform all the technological improvements so absolutely Alright ORG . This would make a little bit more sense but it does feel a bit unintuitive. Let's talk about some of the other suggestions here. We have third ORDINAL point, also urging Disney to integrate Hulu directly into the Disney Plus platform. Of course, that's the Flagship ORG streaming operation. The logic there on the third ORDINAL point side.
Urging Disney to integrate Hulu directly into the Disney Plus platform. Of course, that's the company's flagship streaming operation. The logic there on the third ORDINAL point side is that this would save money, reignite growth, and domestic streaming. Does that logic hold water with you? I think it does to a certain extent again. This is again been one of those constant conundrums for Disney ORG . Remember Disney has a 66% PERCENT Take in Hulu this is jointly owned with Comcast ORG and the the two CARDINAL companies actually have an agreement between them which allows You know Disney to buy back to 33% PERCENT in January of 2024 DATE the problem really here is value They have agreed to a minimum valuation of about 27 1 billion dollars MONEY which Disney ORG has to chill out at least nine 1 billion dollars QUANTITY but contest is going to want much much more and the two CARDINAL parties have been in arbitration But again this price is going to be a major sticking point which is why Disney does not want to rush into it is is what I'm thinking Disney costumer among the highest in the industry we believe Disney significantly under earns relative to its potential we urge the company to embark on a cost cutting program that addresses both margins and the disposal of excess under performing assets He write in that regarding I am reading from his letter. So he is right when he says that they have the highest cost in the industry so remember this year Disney is going to pay out 30 1 billion dollars MONEY in terms of content cost Platform Now that that is the highest by the way in the industry but that's that's it the reason is being that much is because of majority of it is really because of sports right so you know they're being about eight to nine 1 billion dollars CARDINAL in sports trades and that's why ESPN ORG is the number one cable network when it comes to earning affiliate fees in the industry that's what drives the four and a half DATE one 1 million CARDINAL Also remember this is the biggest movie studio in the world they are half CARDINAL of the global box office so in order to generate you know 11 10 DATE or 10 11 1 billion dollars in global box offices they have to make significant investments again a major part of the cross there My my only contention with the cost argument is you wanna build a streaming platform that is you know the leader and you have to be careful because you know content is the key to differentiator Yeah, right? We say content is king. When you got somebody like Thor GPE , Love and Thunder WORK_OF_ART , like I'm in. I'm just gonna tell you, I'm all in an Avengers NORP . Yeah, I don't watch movies. Hey, Facebook. It sounds great. Always greatest guitar oregano and she's Bloomberg PERSON intelligence, technology, media, analyst, joining us on the phone in New Jersey GPE , Gita GPE , thank you. Alright, back to Nancy Lyons PERSON in DC GPE with World of National News ORG . Hey, Dan PERSON . Thanks, Carol PERSON . Rudy, Giuliani PERSON , is a target of a Georgia GPE criminal probe, a potential election fraud, Robert Castello PERSON , a lawyer forgulani says Former New York GPE mayor's legal team was informed today DATE he was a target of the probe not just a witness Acres are seeking additional information concerning the FBI ORG search at former President Trump PERSON 's Mara Lago Estate ORG leaders on both sides of the aisle are requesting a briefing from federal authorities Bloomberg PERSON contributor Rick Davis Revelations PERSON about the kinds of document cease is not good news for Republicans NORP . This is such an overreach what a historical thing to search a former president's home and then they see the list of items that were taken including top secret material regardless of what it's about is top secret material in fact we're not even supposed to know what it's all about it's top secret material the more you say top secret sitting in his you know dungeon with a lock on Is not gonna be good for republicans NORP . Bloomberg PERSON contributor Rick Davis PERSON . Trump today DATE said among the items taken from his home were three CARDINAL passports including one CARDINAL that had expired. There's been no confirmation on that from the justice department ORG . A new study predicts a third ORDINAL of Americans NORP will live in so called heat belt within the next 30 years DATE nonprofit research firm first ORDINAL street foundations as a 1000 CARDINAL counties from the Gulf Coast LOC to Chicago GPE we'll see at 1 day DATE a year when the heat index goes above 125 CARDINAL ยฐ And parts of the Pacific Northwest ORG will wilt under near record heat this week DATE as a high pressure dome builds across the region taxing power supplies with residents cranking up those Conditioners ORG . Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take on Nancy Lyons PERSON
Eyes with residents cranking up those air conditioners. Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take on Nancy Lyons Alright PERSON , Nancy PERSON , thank you so much. Our aerial agami saying, get your socket ranch ready cuz it's time kids to make a peloton. Yeah, peloton to embrace, build it yourself, bikes, of course, is it Tries to cut cost currently when a customer or an orders a bike from Peloton PERSON do you come in is delivered instead of by a professional in the users home very dignified but the idea going forward is that it's too Be designed the bike so that the customers can unbox and assemble it So there you go Okay, you can't see me. You can't if you're watching YouTube ORG . I'm like, look at Katie PERSON , like dumbfounded and raising my like, it just feels like Peloton PERSON is throwing a ton QUANTITY of stuff out there. Yeah. And hoping for investors to It's it's like it's it's very Ikea of them. I don't have you ever put together like one of those. The bully shelf. Whole after i got married that was one CARDINAL of the first I know it was like years ago we bought like this big cabinet My husband I think we both were like I was gonna say ask my husband I've never put together anything for my Kia ORG I wanna get Caroline Hide's PERSON thoughts on this though like I know she loves hers. Well, it's kind of a high-end So do you just say this is what we're gonna be and just lean in all. I I don't know. I I don't know. Stock is up one% ORG . Today DATE was up almost 14% PERCENT on Friday DATE . It was up three%. No actually it wasn't. Yeah up seven and a half percent DATE on Wednesday DATE . I mean they've been throwing about just stuff out there. Absolutely I mean think about the news that we got last week DATE that You buy one if you have to put it together. I complain about it on social media But remember Peloton ORG said it would lay off but 100 CARDINAL workers that was just on Friday DATE raise prices if it's equipment and also outsource deliveries and some customer service functions and of course build it yourself bikes. Yeah. It seems to be part of that effort. An investors love On Friday DATE let's start this. Performing this sort of pivot or trying to at least gotta give it to him. Definitely shaking it up and investors know a single bit today DATE .
Markets headlines in breaking news 24 hours TIME a day@Bloomberg. Com the Bloomberg Business app ORG Call Woodberg World ORG Hank Waters PERSON I'm Charlie Pallock PERSON we have got 13 minutes TIME to go ahead of the closing bell with a dowel the S and P and no stack all retreating star are all higher I should say stocks are advancing mega caps catching bibs as investors digest week DATE data on New York GPE menu facturing and the Chinese Stocks ORG higher across the board with the S and P now up by 19 CARDINAL very close to the best level up by about five CARDINAL tenths of one% ORG the Dow up 100 Five up five CARDINAL tenths and we have got The Down Jones Decline of one CARDINAL . Three% GPE west Texas GPE intermediate cru Up by four CARDINAL tenths of one% ORG I'm Charlie Pellet PERSON that is a Bloomberg GPE business flash alright Charlie PERSON thank you so much it is 349 CARDINAL on Wall St the following is an editorial from Bloomberg GPE Penya Was written by the Bloomberg PERSON editorial board 1 year ago DATE Afghanistan GPE fell to the Taliban ORG in park because the US GPE had hoped for the best without preparing for the worst in dealing with the Taliban ORG today President Joe Biden PERSON can afford no such illusions the US GPE needs to take a Magmatic LOC approach to further engagement. It's top priority should be preventing Afghanistan GPE from again becoming a base for terrorist attacks. It's also in US GPE interest to avert a humanitarian disaster in Afghanistan GPE and to bring Afghans NORP who qualify for so called special immigrant visas Us GPE as quickly as possible. Agenda PERSON is admittedly limited but simply for stalling the worst would be no small achievement this auditorial was written by the Bloomberg PERSON editorial board for more Bloomberg PERSON opinion please go to Bloomberg PERSON . Com slash opinion or OPI and go on the Road terminal.
The Bloomberg PERSON editorial board for more Bloomberg PERSON opinion please go to Bloomberg PERSON . Com slash opinion or OPI and go on the Bloomberg PERSON terminal Bloomberg Opinion. Oh no no no no. What's the question that drives us? Hey Jovan Dawn PERSON . Radio. Everybody just about 10 and a half minutes TIME left in today DATE 's trading session and as you know we've been talking got another rally under my slight rally up about 19 CARDINAL on the S and P is Charlie PERSON mentioned up about half a percent PERCENT on the Dow The Nasdaq up by about two thirds CARDINAL of one% ORG . So, let's get to it. As we drive to the clothes on this Monday DATE , Hicksmith ORG is back with us. He's chief investment officer. Have her for trust which as you know, is based in Redner GPE , Pennsylvania GPE . Hank GPE , nice to have you here with Katie Griffeld PERSON and myself, you have repeatedly come on with us this year Set a recession and a bear market are not likely is that still the case in your view? Well what if a one CARDINAL aspect of we do have a technical recession to find by two consecutive quarters DATE with negative real GDP growth The health of the consumer corporate Corporate balance sheets the banking system is well capitalized And there doesn't seem to be any problems there. So, on the one hand, a lot looks good about the economy The big part though is inflation. A lot looks good in the economy inflation being its own special animal what is the stock market look like though because if we think about the past 2 months DATE since June DATE 's lows it's been a pretty robust rally the question it feels like everyone is asking is whether that June DATE Was actually the bottom what's your view? Well what the stock market is anticipatory vehicle Anticipated Inflation ORG which is really kind of Junish with a very weak first half DATE and now I think it's anticipating that we are beyond peak inflation and that a lot of factors including the Federal Reserve's ORG policy is starting to unwind inflation and and Engineer a somewhat soft landing and so I think that's what the the the market is really focusing on I don't think there's focusing on a said pivot because I think we're gonna see That fun rate increases through 2022 DATE but maybe that's it. Maybe in 23 CARDINAL were done that Macro ORG issues with you I put out my Twitter PRODUCT poll this morning TIME and I said new week what's top of mind for everybody and so far the votes are coming in 32% PERCENT say a China GPE US GPE slow down or the China GPE US GPE slowdowns that were already seeing almost 30% PERCENT say the retail earnings we're gonna get this week DATE and also the retail sales date on Wednesday 24 Say the FOMC minutes DATE which we also get on Wednesday DATE from that last fed ORG meeting and about 13 and a half percent CARDINAL say other which they are weighing in on different things that are top of mind for them what's top of mind for you when you think about this week ahead DATE ? Well I think the retail earnings are are very important although clearly there's been a shift in spending from goods to services and experiences because if you look at what mass recard in visa have been saying that spending is is still pretty pretty robust but it's in different areas But I still think it's important what we see from Walmart ORG , Target ORG , Home Depot ORG , Lowe's ORG , because that's a good measure of of the strength of the consumer. So, that's top online this week DATE And yes Jill PERSON political Events you know I think the market has gotten a heat to say it this way almost used to the conflict in in Ukraine GPE yeah
Events you know I think the market has gotten I hate to say it this way almost used to the conflict in in Ukraine GPE yeah and and there's potential that you know they could get worse given the fall and early winter DATE approaching in in in Months DATE in terms of Terms of oil and and natural gas throughout Europe LOC And so how do you sort of structure your portfolio with some of those geopolitical concerns in mine particularly when it comes to the energy sector for example if I look at the SMP 500 at the sector level that's by far the winner do you think that trade has sort of run its course at Except for some of our yield oriented strategies where we do have some energy exposure because of the very high yields and names like chevron But The Hey We're we're continuing to stay away of from the sector due to the sick locality of it and the lower quality I mean when you look at how many companies in the energy patch went out business in 19 CARDINAL It's a tough sector to invest in in terms of where we're focusing on our biggest weight is in the health care industry Sector in in I think there's three CARDINAL things going on. The reopening play. People are finally getting procedures that have been delayed because of the pandemic. Also with the defensive sector It's a attractively price sector You get good yield with growth of income and that's a nice combination in an inflation area Barbara PERSON . Where don't you wanna be right now? Well you know I'm I did mention Energy which we are without in our growth strategy so we don't have any waiting there and we're absent utilities And read those of the three CARDINAL areas where we have no exposure. Alright and so Sorry Continue PERSON to favor equities over fixed income. Well, that's where I want to go. Actually, I'm glad you brought that up. Talk to me a little bit about that because if I look at the treasury market for example, we've seen a big, big rally. Yeah and and clearly yields are higher today DATE even even with the rally and prices recently yields or hired today DATE than than they were a year ago DATE for for sure but if you if you have an outlook of of five 710 years DATE your hard pressed to make a case Equities and particularly dividend pain and dividend growing equities So I think you'd have to see yields much higher The the right competition for for activities Leave it there. Hey, Hank. Good to check in with you again. Hank Smith PERSON , chief investment officer and have a trust that company based in Redner GPE , Pennsylvania GPE . Hey, joining us on this Monday DATE . We've got just a few minutes TIME left in today DATE 's trading session and we are seeing equities just off their high so up about 14th of a percent of both the S and P and the Dow Jones Drill average. Nasdaq ORG hired by about six tenths CARDINAL of a percent. Alright ORG , time to head over. To our TV colleagues for Beyond the Bell live on Bloomberg Radio ORG , TV, and YouTube ORG . We're counting you down to the clothes Bloomberg PERSON 's comprehensive cross platform coverage of the US GPE market closed darns right now. We are about 2 minutes TIME away from the end of the trading day Caroline GPE High Taylor Rick Shanally Bassett PERSON counting you down to the closing bell hit to take On that bell. With a global simulcast has always carol master PERSON and Katie Greyfelds PERSON in bringing together our TV radio and YouTube ORG audiences worldwide. We dig into what drove trade and it feels as though we're worried about the economic picture but Tech ORG manages to drive us higher yeah once again right we've seen this picture before I'm thinking about a
Tech ORG manages to driver's hire. Yeah, once again, right? We've seen this picture before. I'm thinking a lot about what the retail earnings this week DATE are gonna tell us about the consumer and the health of the consumer. Hank Smith PERSON over at have her That's certainly on his mind. He says, well, Walmart ORG has to say, he knows that we've seen a shift in spending away from goods to services but he wants to see how healthy the consumer is, Katie PERSON . Keeping an eye on energy because big tech obviously powering the benchmark index is higher except if you look at energy you'd it doesn't show up again at the index level but that sector really taking a beating again as oil prices After that just rough data from China GPE And you see that in that sort of highlights a lot of the caution that we've received on the TV side of things snowy I know that lot of the guests we have at the top of O'clock hour TIME in the 3 o'clock hour TIME and our last guest as well from UBS ORG really high lighting that they're not sure that the equity markets have room to go much higher from Maybe the sort of like the lack of demand that we continue to see. Yeah, the lack of demand and you have to remember that some of these energy companies are really what drove the S and P in the first ORDINAL place. Just to see that relative weakness recently tailor, you know, it doesn't mean much. Not over. There's still so many catalysts ahead. I mean, just the thing that we're still on tend to hoax about a Walmart that was only 3 weeks ago DATE . They basically preannounced and cut their earnings out like how much more rich can we get in terms of a picture from them as to how the consumer feel Here right now as we look towards all of that data later in the week TIME we still digest the data on the day DATE and manufacturing print a Chinese NORP data that looked pretty woeful but the SMP 500 is the bells ring managers to push up 17 CARDINAL points we are just in a breath From 4300 DATE . We're at 4297 DATE For you. Close but no cigar. Up six CARDINAL tenths of a percent PERCENT up 80 CARDINAL point stars average up 410 percent PERCENT that's a 51 CARDINAL points and Taylor PERSON and Carol PERSON we look at a russel 2000 that Ashley ORG man just pushed into Yeah exactly but it feels a little like I said it was like to say a little bit tortured if I look at the S and P 50285 names in the index higher today DATE 213 CARDINAL lower five CARDINAL unchanged so tailored shows you that investors not all in some down Up you know it's kind of almost an even split there. Yeah and you really see that on the sector level as well. It feels almost even but the little bit of a tilt here to the upside. Really looks in a way sort of a little bit defensive. Carol to your point. Household in products, food and beverage, food and staples, the retail utilities. Those are sort of the big gainers on From a sector level a 10 CARDINAL to actually two and a half percent DATE higher on the day DATE there are still some lagers in KDI do this for you energy of course the clear loser transferation as well and some of the dividend Continue GPE to talk about an inverted yield curve and what that means. So, Kelly PERSON , you're right in terms of sort of maybe 50, 50 CARDINAL , almost split here. Alright, so you did the sector groups. Let me get to The individual gainers in the Monday DATE trade disney we've been all talking about it all day DATE that stock finishing off its highs of the session but still with a gain of more than two% ORG had to mention we know in a letter to Disney CEO Bob Chapek PERSON activist investor download saying he required a steak in the company he's looking for Why would they wanna spin off ESPN ORG at four and a half DATE one 1 billion CARDINAL annually DATE in cash flow every year it is so important to Disney ORG 's top and bottom line wanted to mention Illumina GPE as well top in the S and P 500 number one also top in the Deck 100 upper must nine% in today DATE 's session really reversing that decline we saw on Friday DATE when it lost about eight and a half percent CARDINAL mortgage daily DATE adjusting its price target down to 240 CARDINAL from 3:50 TIME : maintaining equal weight not sure that there was a catalyst today with Companies CEO did talk to time which published an interview yesterday DATE talking about how the company is well placed to witness the world's next great scientific transformation so maybe check that out Tessa PERSON wanted to mention up more than three% GPE today DATE 's session also top in the S and P 500 Nasdaq 100 we did see some of the hedge funds either buying or selling shares of Tesla ORG also the flagship Japanese NORP financial media Nike ORG reporting that Panasonic ORG boosting its EV ORG batter Four CARDINAL tests by 10% PERCENT so maybe some enthusiasm there but definitely an outperformer Katie PERSON in today DATE 's trade. Well, on the other side of the trade of course, we've been talking about it was all about energy. It crude oil falling by about three and a half percent CARDINAL after that really ugly
Side of the trade of course we've been talking about it was all about energy it crude oil falling by about three and a half percent CARDINAL after that really ugly data dump from China GPE that sitting the lives of slumber jay of Haliburton GPE again all those big oil names under pressure today and I Warner Brothers Discovery ORG taking a dive down four% or so that's after a headline across the terminal that the company is going to fire about 70 CARDINAL workers who work at HBO ORG and HBO ORG max PERSON it's the latest round of cutbacks of course and Ken PERSON this is the data there are the stories rather that aren't showing up in the data yet when you think about that blogbuster NFP print but feel like we've read some version of the story Plenty of times in the past few weeks DATE . Yes, suddenly across Tack PERSON across real estate but going back to your data that is facturing into the market. That Chinese NORP data that affected that you pointed out that Katie PERSON . Will it facted in dictated cross asset moves? I'm looking at global macro movers for radio audience. It is a sea of red on your global effects vertical because Came out from the New York GPE number as well but meant that the Canadian NORP dollar the Kiwi ORG the Swedish NORP crown and the Aussie dollar you name it we converse as a US GPE dollar that really gets pushed higher and search of a safe haven and Perhaps the fact that really we're only gonna have walkishness coming from the US GPE overall so we are still seeing of course that focus on the FX ORG market that also fed into Quantities PERSON based cos when you've got a stronger dollar it means you pull back a little bit in your commodities. Start of August DATE that as the Bloomberg PERSON dollar index has its best day since the start of August DATE . So in this really very much a correlation within this WTI of by three CARDINAL . Four% we're at $ 89 MONEY a barrel basically but big metals fell as well. I'm looking at steel up by more than a percentage point. I'm really a bit European NORP yield sinking guilt for example over in the UK GPE 10 CARDINAL basis points lower. And you really see that in the US GPE as well. Pretty stable though across the curve between twos and going out to 20 about four CARDINAL bases Lower a parallel shift downward and you know it's except you go out to 30 years DATE and it's uncha on the day about a 311 CARDINAL system steadiness out there but Katie PERSON this continues to highlight the theme of what 41 CARDINAL basis points of inversion on the two CARDINAL 's tens it's still positive sloping 3 month 10 year DATE But it is the lag that has people really talking the lag between wooden and version means for an impending recession months DATE to follow. Yeah and actually we were talking about how this would be sort of the weirdest recession ever of course with Hank Smith PERSON but it is interesting to see that actually it was the 2 year yield Games today DATE that yield actually going lower. We haven't seen that in a while. Just goes again to show that that Chinese NORP data sort of these worries about demand, what that will mean for other central banks, including the fed ORG , maybe, you know, that pivot Becomes more of a possibility. Yeah, I think it's so interesting. That volatility in the 2 year DATE because you were talking about it slipping the yield but then by the end of the We were back up to 320 CARDINAL and so do investors view the US GPE as a safe haven or not at what point do the Chinese NORP economic data create better or bigger problems Here at home and and to what excent are we kind of going to grapple with all of these offshore profits that are The dollar. What's going on in the US GPE ? If there is a consumer slowdown in terms of purchasing more goods, we know China GPE 's such an export light economy. We're talking about this with our Doug Krisner PERSON of Daybreak Asia LOC . You know, and that just provides more problems, not only for the US GPE economy but also the Chinese NORP economy having said that, pushing forward, retail earnings, retail sales on Wednesday DATE . This is gonna be really important. Retail They are really under perform versus the S and P 500. So, we mentioned Target Walmart ORG , both of them have already kinda come out and said, some bad news. So, Carolyn PERSON , I do wonder, does it then potentially if they show some more update news, could this be some potential for those stocks and those names to actually trend higher this week DATE ? And what about the more luxury What about the Macy ORG 's? What about the yesterday DATE louder? What about the desire for those at the hiring come racket to pull back too when they're looking there 401 CARDINAL Ks when Portfolios have done. Does that start to eat into that part? Because that have been very secure when we hear from Macy ORG 's in the last earnings. Very much seeing that the solid spending coming from the higher income brackets but we know that lower income.
Solid spending coming from the higher income brackets but we know that lower income brackets have already been so hard and this has been an equal society once Are we gonna get any positive music out of Target GPE and TJX ORG so we gonna get any signs of concern coming from the luxury side and Carol PRODUCT just finally to bring a full China GPE 's ability to export deflation the over inventory that these companies have the deflationary forces that follow Smart enough to call peak inflation but from some of the data points it certainly looks like maybe we're heading in that I'd be afraid to copy inflation cuz man social media just like comes at you Yeah it's it's hard to say but I mean Carol PERSON what we were talking about earlier is when it comes to peak inflation it feels like in this case this is where the fed ORG actually does care about the absolute level. We talk about that rate of change all the time. Eight and a half percent TIME inflation though. I would get a little bit worried. It'll remain worried about that level. It's hard for the fed ORG to say we've got Covered folks and we're still running at what eight and a half percent DATE . So, we have to think about it on a historical basis. That's a wrap guys. That's our crossplay from coverage or someone cast on radio, TV, and YouTube ORG . Lots coming this week DATE . We'll be back same time, same place tomorrow DATE . You're listening to Bloomberg Business Week ORG with Carol Masser PERSON and Bloomberg PERSON Quick Takes Tim Stenovic PERSON on Bloomberg Radio Alright ORG , this is Bloomberg Business Week ORG . Carl Master PERSON , Katie Griffell PERSON , Katie PERSON getting ready for her swan song. I cannot wait. I will say. You're relieved of this for a little bit. A little bit. Yeah, yeah, I'm working from home tomorrow DATE . Really excited for it. I'll be listening on the radio though. To hear about how. Really? Oh, big time. Come on. You know, take my partner, Tim PERSON instead of it. So Well, listen, you know, when you've been away for a week DATE on a vacation, you'd, I know I really tune myself out on my week long vacation and all of a sudden, you're like, wait, what happened in this world? What? It feels like a lot has happened in the past week and a half or so DATE There. Tim PERSON just do the Bloomberg PERSON quiz that I'll get you at the speed really quickly. Alright, let's get back to all the national news. Everybody, Nancy Lions, she's in DC GPE . Hey, Nancy PERSON . Thanks, Carol PERSON . Senators are pushing for more details about the content of the document cease last week DATE at Mar a Lago LOC . Members of the senate intelligence committee ORG made a bipartisan For those documents. Senators Mark Warner PERSON , a democratic chairs the committee, and Marco Rubio PERSON , it's Republican NORP vice chairman, made the request in a private letter yesterday DATE to the justice department ORG in the office of the director of national intelli They asked the agencies to provide the panel with the documents and a quote assessment of potential risks to national security as a result of their mishandling. In Washington GPE , I may be more as Bloomberg PERSON radio, Rudy Giuliani's PERSON lawyer say they've been told Giuliani PERSON is Criminal investigation into possible illegal temp attempts by then President Trump PERSON and others to interfere in the 2020 DATE general election in Georgia GPE also today DATE a judge says South Carolina GPE Consenator Lindsay Graham PERSON must testify before a Georgia grand jury concerning that possible election interference he previously said he was immune to such testimony due to his position as a senator Well it was 1 year ago DATE today that the Taliban ORG sees the capital city of Kabel WORK_OF_ART the state department's ORG ned price says it means America GPE is no longer spending money and losing soldiers ending Longest war EVENT in American NORP history was never going to be easy But 1 year later DATE , we are in a stronger position as a country because of the president's decision. Comments come on the day DATE that a new GOP ORG report was released condemning the bikeman administration for its handling of the withdrawal it says they were Few counselor officers helping afghans NORP flee global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 jour An analyst in more than 120 CARDINAL countries. Nancy Lyons PERSON and her 99 one CARDINAL newsroom in Washington DC GPE . Nancy PERSON , thank you. Hey, Carol Master PERSON along with Katie Greifield PERSON . On this Monday, August 15 DATE and this was I think the last time that the latest that hedge friends had to After 13 CARDINAL Filings please for the most recent quarter DATE right we are getting a flood of them right now we have a great top led blog on the Bloomer Terminal ORG just going through it a little bit
Tina Filings PERSON . Please for the most recent quarter DATE , right? We are getting a flood of them right now. We have a great top-led blog on the bloomer terminal. Just going through it a little bit. D one CARDINAL capital started a new position in Tesla ORG . But about 178 1000 QUANTITY chairs in Semi conductor maker ASML holding N Ferrari ORG but it ditch five CARDINAL companies entirely including Burlington ORG stores and sweet green man no love for sweet green love some sweet It's so easy. You do it on your app. You just go and pick it up Know I love it. It really is the app. Actually, the convenience factor cuz I like other places, perhaps a little bit more but is it such a pain? I know, right? Yeah. And then you can skip the lines and stuff. I don't know. Pretty bullish on speaker. We're allowed to say, full, full transparency. Me time, source, fund management to increase its holdings a big text stocks ahead of their sharp rally Weeks DATE while adding more than 200 1 million QUANTITY shares of American NORP campus As for those big tech names George Source's PERSON investment firm bolstered its stakes in Amazon ORG sales force in alphabet among other large tech companies all three CARDINAL rank among its top 10 CARDINAL holdings as of the end of June DATE the firm also added a new 20 CARDINAL Position in Tesla though that represents only about 4 tons QUANTITY of sources four CARDINAL . 6 billion US MONEY equities portfolio which fell 664 1 million MONEY in the second quarter DATE and bouncing around a bit Michael Burry PERSON of the big short fame we talk about him and his Twitter PRODUCT all the time but his asset management firm dumped virtually all of its long Worth 162 1 million dollars MONEY at the beginning of the quarter DATE his only holding was a new $ three MONEY . 3 million take in geo group ORG an operator of private prisons in the US GPE Wow. Okay, that's interesting. And then of course we had third ORDINAL point. Founder download, revealing a letter to Disney that it took a significant steak in the company in recent weeks DATE . So, something read about on the Bloomberg PERSON .
Bloomberg Call Bloomberg World PERSON . Charlie PERSON pellet just getting word that paramount global has reached a deal with Walmart ORG to offer its streaming service to subscribers of the retail giants membership program an update today DATE for the Dow the S and P and Nes Closing PERSON very close to session highs stocks advanced for the second day in a row DATE megacaps catching bids as investors digested week DATE data on New York GPE manufacturing and the Chinese NORP economy treasuries gained with the dollar we begin with the 10 year DATE the you'll there 279% PERCENT . The 2 year DATE yo 319% PERCENT . S and P up 17 CARDINAL today that was a game of four CARDINAL tenths of one% ORG we had the dollar 151 up by about five CARDINAL tenths of one% ORG as stack was up 80 CARDINAL at a game there of about six CARDINAL tenths of one% ORG spot gold up $ 23 MONEY a down $ 23 MONEY a ounce to 1779 DATE red on the screen there down one CARDINAL Three% GPE and we have West Texas LOC intermediate crude down three CARDINAL . Four% today WTI 8892 for a barrel of West Texas LOC and immediate cruise so again recapping turned out being update kicking off the new trading west and p harby 17 CARDINAL up four CARDINAL tenths of one% ORG I'm Charlie PERSON that is a Bloomberg GPE business flash. Come Thursday DATE with initial jobless claims which have been trending higher signal and cooler conditions in the US GPE labor market although Here folks. Still low by historical standards and would need to surpass 300 1000 CARDINAL to raise a red flag. So Katie PERSON , the tight labor market continues to really present struggles. We know this for many employers. Absolutely it struggles for employers struggles for the fat as well Jerome Pals PERSON himself has said that basically the the rate of unemployment right now it's unsustainable alright so let's talk about how tight this labor force is and how it is tricky for some employers Julie Apollo PERSON is back with us she's chief economist at Kruter GPE and she is with us on the phone from Los Angeles GPE Julia. Nice to have you back with us. Big picture first ORDINAL of all when it comes to the labor market. We recently had that unbelievable, Monthly DATE jobs report a blockbuster how are you seeing it from my macro big perspective? Hey very very strange moment in the late market where you do see these enormous games and they're very very broad broad games At the same time you see signs of an extremely tight label market as you're saying not just your record low job was claimed and and even though they're taking up slightly they're not feeding into continuing After they get laid off from their tech company and they're getting hired
And yet companies seem quite worried about the possibility the future downturn and they are hardening themselves against that If you look at their future hiring plan they do look a little bit more concerned and they hope that things will be able to turn back to normal and that they Be able to stop Crazy amount of hiring that they're doing. So Julia employers worried about a future downtown. What about job seekers right now? So John seek a confidence is still holding remarkably steady yo should look at all the different confidence surveys CEO conference has plummeted home buyer confidence is very low but John sees her confidence has been Amazingly PERSON strong since the And that's because job seekers have offers in their back pockets they are holding out for better they are convinced that if they resign from the current job the current employers will ask them to stay and give them a raise and and counter an outside offer so they have an enormous amount of bargaining car Bridge. Headlines about layoffs and so they are concerned as well and and the last 2 months DATE their future expectations have kinda GPE taken a nose dive and they're starting to worry that Josh PERSON may not be a splendor Future ORG . That's interesting too cuz the okay yeah so you're talking about sentiment specifically we just certainly something we know the Fed ORG watches keeps a watch on pretty closely in terms of what it might mean for future activity so what's Net net takeaway I'm thinking about can I Day out. We're talking about the big macro issues that are facing investors. You know, recession, no recession, labor market, still strong. How long does it continue? Consumers, you know, spending, how long will they continue? Job market so what's the takeaway the big picture take away that you that you would tell our audience right now And the implications of it. Yeah. Side most companies there this is still an incredibly tight way of market and hiring is so hugely challenging most companies are still seeing about 23% PERCENT more employees quit each month DATE and they didn't 2019 DATE and most companies are still doing about 12% PERCENT Hiring each month DATE than they did in 2019 DATE just to kinda tread water cuz there's so much turn and so so many quit. I think you've understandable that companies are kind of nostalgic for the good old days when everything was slower when they were less turnover and turned what it wasn't so difficult to hire. Right. When they could still insist on on on basic And and you know they could have a rule that we are one strike That's more like a 10 CARDINAL strike rule when you're out rule now because companies cannot afford to lay people off because they know that they can't replace them. Well, people on the other side that write workers are finally kinda getting their day. After years DATE and years DATE of pressure and wages staying down and even on an inflationary you know basis wages are not necessarily keeping up with inflation in a lot of different industries but I I do wonder then is another net take away as we spend so much time talking about the macro issue of inflation which is certainly Front ORG and center and probably the number one CARDINAL thing on the feds mine not probably it is. So, still tight labor market versus what we're seeing in 2019 DATE . Mean wage pressures are sticking around longer. Yes that is exactly I think to take away from this most recent jobs report that perhaps the risk of a recession has gone down a little bit but the risk of persistent inflation is Very much there. And that is the big question. Yo ORG , how much cold water will the said have to throw on this economy? It looks so free. For now, delay market is pretty resilient and it's able to withstand neutral interest rates. But could it withstand much higher interest rates? That's a big question. I think that's why you see some sort of Harshest optimism on spend some parts of the market and even some sensitive gloom and doom and others.
Hey I didn't even some sort of gloom and doom and others like in those Factory numbers that came up today DATE . Alright, gonna leave it on that note. Thank you. Julia Paula PERSON , Chief Economist, zip recruiter, joining us on the phone from Los Angeles GPE . Any thoughts there? I just that last point you made that it feels like workers are finally having their day DATE . I just hope that remains. Obviously, that's a huge product of the labor shortage but hope that momentum sticks around. Lower and I wanna say pre pandemic and then you know they were certainly pressures there. Alright, you are listening to Bloomberg GPE business week more to come in just a moment. I'm Bloomberg PERSON .
Broadcasting live from the Bloomberg NORP interactive broker studio in New York GPE Bloomberg 11 three oh DATE to Washington DC GPE Bloomberg PERSON 99 one CARDINAL to Boston GPE Bloomberg 1061 DATE to San Francisco GPE Bloomberg 960 CARDINAL to the country series Alright, Katie WORK_OF_ART just said to me, man, I cannot wait to talk to Max Chapkin PERSON about his piece of Bloodberg PERSON business week. My husband has been following the Alex Jones PERSON trial. We're happily. I have not and this is a great reason for me to get up to speed. I was at the beach on vacation when the outcome of that trial came out and we were all talking about a big time. We don't talk to Max PERSON though who's got a story. There are marks in the upcoming new issue of business week Meantime a lot happening on this Monday DATE Charlie Pellet PERSON all over it. I thank you very much and here's what's going on. Let us begin with ginko bioworks holding stock up by about 15% PERCENT after ours after reporting total revenue for the second quarter DATE that beat the average analyst estimate. Paramount ORG global has reached a deal with Walmart ORG to offer it Streaming service to subscribers of the retail giants membership program Walmart ORG by the way will be reporting earnings tomorrow DATE morning TIME stocks up for a second day in a row DATE megacaps catching bids as investors digested week DATE data on New York GPE manufacturing and the Chinese NORP economy raising the question are we in a recession hank Smith Cheap ORG investment officer at Harborford Trust ORG and he was our guest right here on Bloomberg Business Week ORG . It's the most The banking system as well capitalized And there doesn't seem to be any problems there Today DATE we saw the S and P 500 CARDINAL index close close to session highs up by about 17 CARDINAL points up four CARDINAL tenths of one% ORG the dial up 151 CARDINAL higher by about five tens CARDINAL of one% ORG now stack up 80 CARDINAL points today DATE for the net stack composite index that was a game of six CARDINAL dense one% ORG now stack 100 CARDINAL index up by almost eight CARDINAL tenths of one% Russell 2000 ORG up by two CARDINAL tenths of one% ORG can you yell 279% PERCENT . Of the 2 years DATE
Index up by almost eight CARDINAL tenths of one% Russell 2000 ORG up by two CARDINAL tenths of one% ORG can you yield 279% PERCENT . Of the 2 year old DATE 319% PERCENT . Gold spot gold down one CARDINAL . Three% GPE 1779 DATE the ounce and west texas PRODUCT Your crew today DATE moving lower by three CARDINAL . Six% 8878 DATE apparel for West Texas LOC and immediate crude so again recapping an update on Wall St two in a row DATE for the S and P 500 CARDINAL index up today DATE by 17 CARDINAL points up for tenths of one CARDINAL Bloomberg NORP business flash. Although this next story already on the Bloomberg PERSON and@Bloomberg. Com slash business week it will be the new issues opening remarks it is a story about Alex Jones PERSON the far right radio host and professional conspiracy theorist choose actress spreading lies got him thrown off many social media platform You know that and yet it didn't stop him Katie PERSON from building up quite a following and really banking a lot in the process Been PERSON depressing i would say that sort of cancel culture I know that it has a lot of connotations but in this case it felt like this was maybe a good sort of cancellation but end up working out for Jones PERSON alright so let's get to the story by our own max chafkin Max's PERSON calmness for Bloomberg PERSON business week he's on the phone in Queens GPE alright Max PERSON take it away About first of all i'm assuming everybody knows who Alex Jones PERSON is but I should never assume so just give us the quick one two CARDINAL on who this individual is. So yeah Alex Jones PERSON is as he said a basically right wing conspiracy minded talk radio post he's been on the radio since the mid 90s DATE and his kinda stock and trade is crafting his really convoluted conspiracy theories In ways and often around mass violence and tragedies and Jones PERSON got really popular in the during the mid 20 tens first because of social media and then because he kind of embraced Trump and got caught up in in a lot of the the sort of like viral appeal of of He has been subjective a lot to lots of losses over the years DATE and and wonder that that people have been talking about that I focused on has to do with his comments about Sandy Hook the the the 2012 DATE massacre in which 26 CARDINAL and 7 year olds DATE and six CARDINAL teachers were killed Has been for years DATE basically pushing a conspiracy theory that you know alleges that the families and the children were faking this and as a result they started to these defamation trials and then finally a lawsuit that that ended with Jones PERSON being ordered to pay something like One 1 million dollars MONEY damages to to the parents of one CARDINAL of these 6 year olds DATE and what was so interesting about this case I mean it it had all these kind of made for TV moments as you as you might expect but one thing I was very interesting is that we learned a lot about the econ Said Alex Jones PERSON is needy empire and the numbers are just frankly kind of astounding he was making huge sums of money but before and after he was kicked off social We'll walk us through some of the numbers what are we talking about So we learned A document and testimony and then from the testimony expert witnesses that Jones PERSON was making around 50 1 million dollars MONEY a year selling merchandise so so info wars what's the Company. It's it's a it's an unconventional media business. It doesn't sell a lot of advertising as you might expect given kind of the the topic. It's not advertiser friendly. What Alex Jones PERSON does is he attracts attention and then he uses that attention to to sell products Vitamins PRODUCT survival gear and and merchandise you know During the 2016 DATE election campaign is a lot of pro Trump merchandise but but a lot of it's sort of political and what happened is in 2018 DATE I thrown off social media and if you wanted to trial the revenue numbers actually went up he was making around 50 1 million dollars MONEY a year and then we saw it testimony during the the trial that I said he was making you know around 7:65: one 1 million dollars MONEY in 2012 DATE you know years again after he was thrown off social media and that really cuts against a lot of the
65 1 million dollars MONEY in 2012 DATE you know years again after he was thrown off social media and that really cuts against a lot of the kind of conventional wisdom about you know quote unquote deep platforming Jones PERSON had been you know kind of pushing his That as result of Facebook, Twitter PRODUCT , YouTube ORG , and so on. Taking all social media that he'd lost due to money, and in fact, he didn't and I think the the fact that he didn't is kind of causes I think a little bit of a rethinking in terms of the wisdom of of the platforming and and exactly how it works because he was able to use it very much his advantage Alright so what's the kind of the take away here Max PERSON in terms of you know the power of kind of the conventional there I say conventional social media platforms the massive ones that are out there you know and then comparing it what what Jones PERSON has done on his own and just got about 30 Seconds TIME 40 seconds hey Is he wasn't really the platform. One CARDINAL is that the social platforms waited too long and the second ORDINAL one is that he wasn't really the platform because he's still able to kick up tons of noise on social media through folks like Joe Rogan PERSON even without So so again make you sense of money It's a great story. And I highly recommend everybody check it out. They can read it and it's entirely Max PERSON . Thank you so much. Bloomberg Business We Calmness ORG , Max Jack PERSON , enjoying us on the phone in Queens GPE , New York GPE , and as we mentioned, this will be the upcoming issue of Bloom Business week ORG out later this weekend DATE it's entirety and this story will be the opening remarks so you can check it out but right now you can check it out on the Bloomberg Terminal ORG also at Dot com slash business week. Right now, it's off to DC GPE , World of National News ORG with Nancy Lyons PERSON . Hey, Nancy PERSON . Thanks, Carol PERSON . It is unclear if the justice department ORG will reveal any more about its investigation into classified documents that were found A search of former President Trump PERSON 's Mar a Lago estate Bloomberg PERSON Washington GPE correspondent Anne Marie Hordurn PERSON says lawmakers want those details Or Warner ORG who's the chair of the senate intelligence committee ORG along with Vice Chair PERSON , Marco Rubio PERSON , obviously a Republican NORP and a Democrat NORP asking the DOJ ORG and the office of the National Intelligence Director ORG for the contents of what was in these documents, 11 CARDINAL sets of classified material. Bloomberg PERSON , Trump ORG has said any documents taken from his resort were all declassified but for classified documents that involves a process that includes approval from other agencies Senator Lindsay Graham PERSON says he plans to appeal today DATE 's rolling requiring him to testify before a grand jury in Georgia GPE the Fulton County GPE District Attorney is investigating alleged Fearance in the 2020 DATE presidential election attorneys for Rudy Giuliani PERSON say they've been told Giuliani PERSON is a target in that investigation House ORG Republicans NORP are out with the scathing report on the US GPE withdrawal from Afghanistan GPE it was 1 year ago DATE today US GPE troops left the country congressman Mike McCall PERSON is the top republican NORP on the house foreign affairs committee ORG We promise them that we would get them out and you know saying no one left behind and we violated that promise Call says the US GPE did not have enough personnel at the Cobble Airport FAC the Biden PERSON administration says the quote partisan report cherry pics information and provides inaccurate characterizations Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalist and analyst and more than 120 CARDINAL countries Hi Nancy Lyons Alright Nancy Lyons thank you so much Carol PRODUCT Master along with Katie Greifield PERSON in Arborenberg PERSON interactive broker studio a headline crossing the Bloomberg Terminal ORG as you know we did on Friday DATE get the release of the search warrant of former President Donald Trump PERSON 's Florida GPE home and Marla Lago PERSON that was the actual search warrant will there's been pressure or at least requests for the just Department ORG to release the affidavit the FBI ORG affidavit that showed the justification for the seizure of documents at Donald Trump's PERSON Marlogo GPE home all right now headline crossing that the justice department ORG of the United States GPE opposing the release of that affidavit that led To that Trump ORG search of Mar a Lago or the FBI ORG search I should say of Trump ORG 's Florida GPE home more a logo alright you are listening to Bloomberg Business Week Kid Grild she's a busy lady around here in earlier today she co-hosted
Of Trump ORG 's Florida GPE home more logout alright you are listening to Bloomberg Business Week Kid Greyfeld she's a busy lady around here and earlier today she co hosted the ETF ORG program on Bloomberg Television ORG yeah every Monday 1 PM TIME sometimes on Wednesdays DATE but mostly on Mondays DATE This was a really interesting one because the theme that we've been tracking over the past couple weeks DATE is sort of the rise of We got a pretty interesting guest on today DATE . His name is five CARDINAL Ace Ramaswami PERSON . He is co-founder of Strive Asset Management ORG and last week DATE they launched the Strive US GPE energy ETF. The gold being basically to accumulate accumulate enough aci That they'll have a say You know, what these different companies are doing. Right. In terms of shareholder votes, and he wants to encourage oil companies to basically drill more. He does. He does. He wants them to drill more. Yeah. Totally anti ASG. I called him auntie ESG in my intro he argued we're not anti anything we're pro So we're pro excellence, pro making money, and these oil companies, they're not drilling enough oil. We know that there's demand out there and we're not meeting it. Isn't it funny that he's calling anti ESG at a time when ESG is coming under a lot of scrutiny for saying, wait, wait, wait, are you really ESG Hey Facebook Been so many high profile sort of where can we find the show You can find it bloomer television 1 PM eastern every monday TIME .
Markets, headlines, and breaking news 24 hours TIME a day@Bloomberg. Com. From Bloomberg World Hank Quaters ORG I'm Charlie Pellett Zip Recruiter PERSON shares now down by five% after our zip recruiter has cut its revenue guidance for the full year DATE the guidance did miss the average analyst estimate it Report second ORDINAL quarter DATE revenue of $ 239 MONEY . 9 million CARDINAL estimates 234 CARDINAL . 7 million CARDINAL gingo bioworks holding shares up by about 15% PERCENT in post market trading after reporting total revenue for the second quarter DATE that did beat the average hours estimate Up by about five CARDINAL tens of one% ORG as stack up 80 CARDINAL that was a game of Tens CARDINAL of one% ORG . Catching bids today DATE is investors digested week DATE data on New York GPE manufacturing and the Chinese NORP economy tenure of 11 30 seconds TIME 10 year DATE yield 278% PERCENT . Spot gold tumbled $ 23 MONEY the ounce to 1779 DATE a decline of one CARDINAL . Three% GPE west Texas GPE intermediate crude now Bloomberg GPE business flash. Alright, got to Charlie PERSON , thank you so much. We wanted to wrap up on this Monday Story that was among our most read on the Bloomberg Terminal ORG today DATE . Might not be on your radar. It definitely caught our attention because it's all about the warehousing. We are seeing around the country as we all order so much online. We're talking about logistics and we're talking specifically about what's going on in the LA GPE area because the expansion Looks like it's coming to a halt. At least temporarily of course this is sort of the logistics mecca east of Los Angeles GPE joining us to discuss. So what exactly is going on is Augusta Surviva. She is a supply chain reporter from Bloomberg News ORG . Joins us on the phone from New York City GPE and Augusta ORG you write that sort of these new warehouse and projects are being paused to examine the impact from decades DATE of pollution but why now? Hi, thank you so much for having me. I think the reason why racing that now is because we experience that e-commerce boom during the pandemic. So, not only the number of warehouses and the inland empire, which when you think about it, it's so large. It's larger than New Jersey GPE Larger than Massachusetts GPE . And when you think about it, not only we can over the past few decades DATE , but we really saw a boom during the pandemic. Because when everyone started to buy things, in order to find places to put those items arriving from China GPE , right? So, for Daniel was just natural to look, Alexander ORG 's And to look at the empire which is right by the largest forest in the country. So now they're sort of hunting for space. I have to say the pictures if you're not familiar and I actually wasn't very familiar specifically with all of the warehouses in Redlands PERSON .
Sort of hunting for space I have to say the pictures if you're not familiar and I actually wasn't very familiar specifically with all of the warehouses in Redlands California LOC . You talk about the inland empire more than a one 1 billion square feet QUANTITY of distribution centers. You know all the goods that are coming in on the West Coast LOC before they move out on truck and rail across the United States GPE but it is massive massive is this all about environmental monitoring like what's the reason for the halt? You have to do with the environment for sure when you look at the numbers for example the island empire has the worst levels of own zone and all of the country but also we have some other underlying issues when you think about about the communities there are being the most impacted it's mostly people caller it's people from lower in Background GPE . So really what the cities are trying to do is take a snap back and think about what's going on. Who's seeing the most impacted? So I thought we have the Ozen levels when it looks at the level that Hardy ORG deserves asthma. It's really bad in the region. So really there's putting the brakes on to a set. The Have impact right now. And so what's the read through sort of two CARDINAL the broader economy from these halts as we know supply chains I've heard a lot about them in the past 2 years DATE still extremely stressed and you're right I mean needs are soaring right now Right yes we continue to be a top of mind issue and when you think about it there are 40 1 million square feet QUANTITY under construction 40 1 million square feet QUANTITY of warehouses under construction in the umpire and there there's so going and so when you think of when you think about the people who are against these more The unions representing construction workers. It's mostly politicians saying, no, because it's gonna generate jobs, right? So, it's truly a battle between the two CARDINAL sides. The people were saying, no, we need to take a step back and think about the environmental issues. Think about the economic impact for it these lower income families, threeD Hey look at how many jobs extra 40 1 million square feet QUANTITY are we gonna bring to our region right well it's interesting to Katie Wright PERSON we were talking earlier about ESG and like you wonder if the market was still going up you know money would be flowing still into it and Wonder In terms of what we're seeing for warehousing if the you know They benefit because of the jobs and I do wonder if maybe I don't know if things weren't their concerns. I don't know. I guess I'm trying to understand if things are starting to slow down. I don't know where I'm going with this. It's a Monday DATE . The discussion, why are we having it now? Is it just because environmentally things are just hitting certain, you know, tipping points or or what's going on because as you say, it does provide jobs for the community and I do wonder right now the job market Wrong but you know I do wonder if things start to get a little bit more difficult in terms of labor market would be would we have this conversation because you know people need jobs and and it helps the economy sorry that was a really convoluted way That they've been having for a long time when you think about it I feel like right now the main conversation is videos are happening so for example the city of Simona GPE and the Empire GPE this week DATE it's gonna vote on water to extend the moratorium so this is something that some cities have been doing While it's just that a lot of them haven't found the right answer yet so they're trying to decide whether they should continue the pause or they should go back to the economic activity and all of that but when you look at the future as they said it's not only the 40 1 million square feet QUANTITY it's also come up the largest retailers in the country Amazon ORG is In a few years DATE . So the construction is still going. The retailers are still coming in. Here's a question for you with so many people talking about and I'll try not be so convoluted I need some coffee I think. But I do think about more onshoring, more nearshoring, but onshoring in particular, I mean, that to me, especially when you think about the Amazons of this world and we all continue to order online that we're more likely to have more distribution, you know, centers and the logistics.
Online that we're more likely to have more distribution you know centers and logistic centers closer to where we live that it's hard to kinda slow this trend it's also been a really important investment trend for a lot of individuals as well and institutions Oh no for sure and one of my sources who happen to had one of the largest warehouse in companies in the country he was telling me exactly that he was saying okay but how do we look at the seashell is logistic The new manufacturing for this country is does what's gonna generate the most jobs and at the end of the day when you look at it what he told me is that the distribution center they're gonna be where people are right when you look at where are the most distribution centers in the country it's in the Inland Empire FAC right next to It's a New Jersey GPE right next to New York GPE right so at the end of the day DATE there's just so much you can do you can move some of those distribution centers to WhatsApp Utah Nevada ORG great So there's no easy answer. It is and it's really complicated. Good to check in with you about this. A good to survive. She's our supply chain reporter. It's a job. It's very indicative of our times. Here at Bloomberg News ORG joining us on the phone in New York City GPE . Alright. Supply chain reporter. Which one CARDINAL sticks around? We'll find out. Both? For all the people who just hired. Okay. You so much. Always love when you pitch it. Thank you. Thank you so much. Alright, Tim PERSON said it back though. He will be back tomorrow DATE looking forward to it. Have a good evening TIME .
Hey From the heart of where innovation money and power collide. I'm Emily Jenkins PERSON San Francisco GPE and this is Bloomberg PERSON technology coming up Fitness company is planning a redesign so that customers can assemble their own bikes at home. We'll customer spin for it. We'll discuss. Details on his new steak and why he's urging a spin off of ESPN ORG . And how google maps routinely misleads people searching for abortion clinics why and why it's ever more critical in a post grow world more on our Bloomberg PERSON analysis later this hour TIME . We'll get to all of that in a moment but first I wanna get a look at the market stocks rising for a second trading day in a row TIME the tech Tesla ORG , Apple ORG , Microsoft ORG , and in video Games Bloomers Christina Quino Us PERSON now for more Christine PERSON walk us through the day DATE . Well, Emily, you know, we started the week DATE with bad news out of China GPE coming in the form of an July DATE but you really would not know that just looking at a price action in the US GPE equity market today Green PERSON across the board with the S and P 500 CARDINAL closing up four CARDINAL tenths higher on the day DATE and that comes off of the string of a 4 weeks DATE of games already and that's propelling that Up 18% PERCENT from those year DATE to date lows that we saw in June DATE and of course the Nasdaq 100 also following in the S and P 500 And of course the story of the day or one of the big corporate stories of the Of course, Disney. I know Emily, you're gonna be digging into that a little bit later but it's making headlines today DATE . As you mentioned, because of Dan Lobe PERSON and his company third ORDINAL Point taking a In the company he was very much not shy about suggesting some of those changes that he'd like to see to disney CEO Bob Chapik PERSON and some of them include potential spin Of the ESPN ORG division. I know that you're gonna be digging into that story for us later, Emily, and of course, the semi-conduct Finishing the day DATE three CARDINAL tenths of one% ORG higher now if you Consumer senti Six 10th of one% ORG but then some of it's more JD. Com a bow trading higher on the day DATE of course to clear out perform Here of more than four% but again, if you zoom out to the performance of China GPE tech versus US GPE tech, over the past year DATE , you can really see that the virgins is very, very clear. We see that the golden dragon China GPE index is in Golden GPE Dragon China in that really still extending those gains it's down 30% PERCENT over the past year DATE maybe that has that Middle of June and has now paired those declines to just 10% PERCENT over the past year DATE . So, we're gonna be, I know we're gonna be digging To some of those stories there Emily is very much a feeling of summer DATE markets here.
Over the past year DATE . So, we're gonna be, I know we're gonna be digging into some of those stories there, Emily. It is very much a Of summer markets here but still lots to talk about Alright ORG , Christine ORG , thank you very much and to that Disney story, activist investor Dan Lobe PERSON , urgent Disney to make a sweeping set of changes to booth, shareholder value, including newborn members, and Spinning off ESP that Pierre PERSON loves third ORDINAL point taking what it calls a significant stake in Disney here to Paul Verna of Insider Intelligence in Bloomberg GPE . Leona Baker PERSON , Leona PERSON , some of the changes that Dan Lobe PERSON is calling for here, not necessarily new ideas. I mean, we've heard talk about spending ESPN ORG for years DATE . What is Dan Lobe PERSON suggesting and why? Well, that's right, Emily. In the letter, if you read it, low actually says, Disney might be working on some of these things already, although sources close to Disney, tell me, you know, there's not gonna be an ESPN ORG . Spin off anytime soon, but Hulu from Comcast. These are things that investors have kind of been For years DATE and this is Lope's WORK_OF_ART second ORDINAL bite of the apple at Disney in 2020 DATE remember he had also taken a steak and ask for changes like Disney scrapping Those are things that Disney never really did so we'll see if he has a better shot this time around. Lobe ORG is a big name in the world of activists invest He's shaken up companies like Yahoo ORG and Sony ORG over the years DATE but he does have a mixed track record as to really seeing the changes that he's asking for. Lobes letter to Disney initially starts off Gener Significant PERSON free cash flow despite these advantages we believe a strong case can be made that ESPN ORG should be spun off to shareholders with an Alleviate ORG leverage at the parent company. Disney responding, sort of thanks, not quite. Not quite no thanks saying we welcome the views of all our investors as our results demonstrate the Walt Disney company continues to deliver strong Financial results powered by world class storytelling and our unique and highly valuable content creation And distribution ecosystem Paul PERSON what do you make of this? Well I think it's always got to throw the pot you know dialogue is always helpful and and it's interesting to to put out these ideas but I don't think if if I were about take pic keeping ESPN ORG I'm I'm not spinning it off ESPN ORG does a lot of things for Disney Sports ORG for one it does a couple of things that no other form of entertainment does one is You have loyalty so you know someone is more likely to tune out the next season of the Mandalorian NORP if they don't like a plot twist or something about the casting but they're not likely to just stop watching Major League Baseball or La Liga ORG or whatever else they watch on ESPN ORG and then there's this whole thing about Viewing which is something that's kind of a vestage to Days but it still exists in sports because a game is taking place when it takes place and people wanna watch it so I think there's a lot of benefit to having ESPN ORG as part of that portfolio. It's not an accident that every other media company that Disney competes with has a major sports entity as part of their mix. Aliana PERSON you know what do we know about lobes track record and how likely it is that he'll he'll be successful here With a company like Disney It's hard to say there wasn't vaguely threatening line in the letter today where he said that there's a talent gap on Disney ORG 's board and that he has good connections and could maybe Introductions to Disney ORG . Now, I don't know, you know, who Disney needs to meet that doesn't know already but the idea there is that he's floating out with investors to see if they'll Window for directors would open later this fall DATE so Lope ORG would have a few months DATE to see if he wants to do a Fight ORG . He really does have a mix track record. Taking over boards. At Yahoo back in 2012 DATE , he had a lot of success, although history will tell weather, you know, Marissa Mayer PERSON was the right move. At Southern NORP
Taking over boards at Yahoo back in 2012 DATE we had a lot of success although history will tell weather you know Marissa Meyer PERSON was the right move outside the bees the company went private but it was a really long haul it took several years DATE and Sony ORG still hasn't made a lot of the changes he's wanted so while he's a big name it's not clear You know even though he's going after the pump and that's a slam dunk that all of this will come true. Gosh I remember covering that yahoo lobe Marissa Myers PERSON Every day for a gosh at least a year DATE . Paul PERSON , what do you make of some of these other changes new board members? You know, full ownership of who again, as I said earlier, not necessarily knew ideas but you know, something, something that several investors have been calling for, for a while, but hasn't happened Well I think that Disney buying the share that it doesn't own in Hulu from Comcast is a good idea so I agree with Dan Lobe PERSON on that one There's a lot of tension within Disney because on the one hand, you know, there's a deadline to execute this deal by 2024 DATE . So, obviously It's in Disney's best interest for the price of that chunk to be as low as possible. So, it's almost like a weird motivation to drive down the value of Hulu and that's just a very tense situation that's Forward for the next couple of years DATE . Disney already has a controlling interest in Hulu and in my view they're doing a great job with Hulu. I don't see that they should fold it into Disney Plus necessarily. I think it's a very strong brand on its own. So I I A lot of value in Disney executing on this earlier even if as Dan Lopez PERSON they have to pay a little bit of a premium for it. Alright. Well, we're gonna continue to follow this evolving story. We'll see how long it lasts. Boomersley on a baker, Paul Verna PERSON of Insider, intelligence. Thank you And more changes for Peloton ORG after last week's DATE layoffs and price hikes. Think DIY the struggling fitness Retooling its bikes for self assembly. Yes, that means customers will be able to put them together Themselves. This is part of a wide ranging turn around for peloton by its new CEO Barry McCarthy PERSON who's also planning to launch a rowing machine this year DATE . Bloomberg PERSON 's Mark German PERSON covers all things peloton for us. So, let's get this straight. Palatine just raised prices for the bike. Now, it wants customers to put the bikes together themselves. Yeah I wonder if Dan Lobe PERSON is gonna try to get his hands on Peloton PERSON as well these clearly they have a lot of changes to implement here so yes one of the initiatives last week DATE is part of the layoffs was really Chasing their cost and dropping them significantly when it comes to distribution and warehouses, right? So, we're laying off over 500 people that work in distribution. Now, if you ever bought a Pelo Before. This is how it works and you know this already. You order it online and they show up to your house, white glove service, they bring it in, they unbox it for you, and they set it up for you That's a $ 400 MONEY fee to consumers and it's very expensive for the company to really supply and make happen that's why they're whining on the wear her houses right now Start moving the third ORDINAL party companies logistics companies to do that white glove service the next step is having consumer set these devices up themselves so they're in the process right now the CEO told me an interview last week DATE of redesigning it's equipment so they can ship it via UPS via FedEx GPE It arrives at your doorstep. You open the box, you put it together yourself, and like you said, DIY ORG , that's obviously not a great customer experience compared to the white glove service ORG but that would be cheaper for the customer, no longer paying that $ 400 MONEY setup fee. Be cheaper for Peloton PERSON and if they have redesigned it in such a way where it's a 15 minute TIME Right with just a few parts it's actually pretty convenient rather than having people come into your house We've covered some of the safety issues with Pelaton ORG products. I mean, are there any safety issues with Yeah, I mean, I have to tell you, obviously, if you set up a bike incorrectly or the rower or a treadmill incorrectly, right? And that thing falls apart cuz you didn't do a good job. You know, setting up the device. That's a clear li Issue. So that really comes down to their engineering, their supply chain, their operations, to figure out a way to make these devices work reliably and set up reliably, right? So if you have to have the equipment to The right screwdriver, the right screws, that could be a complicated situation. So, that is definitely a consideration and I guess we just have to hope that Peloton PERSON has Near these things so they could be set up quickly and safely.
It could be a complicated situation so that is definitely a consideration and I guess we just have to hope that So they could be set up quickly and safely. You've also reported on products to come a rowing machine what else can we expect Yes so a rowing machine that's the next major product from Peloton ORG other than this minor redesign of the bike so allow for safe assembly Peloton ORG rolling machine has been in the works for several years DATE now Barry McCarthy PERSON says they're finally probably gonna launch in the holiday season DATE he hinted at some supply chain snags related to COVID so let's see if they're able to get that Lunch PERSON . They launched the guide. That's a TV device that allows the the TV device with the camera to follow along and really analyze your workouts and tell you how you're doing. After that, they're Been working on a machine similar to a tonal and another strength training machine. There's also wearables in the works. They have this Monitor so maybe they'll expand the wearables business as well but what I really think is they need to really you know probably make a cheaper bike right the cheapest bike right now is around $1500 MONEY I think the sweet spot for something like this Probably south of a $ 1000 MONEY . They've been pushing their refurbished model. Maybe they can make a really low end self-assembleable bike. Maybe with a smaller display, less integrated technology that could really With bikes from Eschelon GPE and other companies that are simply not charging as much as pelo Alright interesting what we'll continue to follow your reporting on Peloton Bloomberg's PERSON Mark German PERSON as always It. Monday DATE is the deadline for hedge funds to disclose their US GPE equity investments for the Quarter DATE . This is one CARDINAL of the few ways that we get insided to how hedge funds and some large family offices actually invest. They had fun ducain but Eli Lily ORG , crowdstrike, Maderna GPE , and Data PERSON dog. Meantime, Tiger Global PERSON took new positions in alph PERSON And Zilla PERSON according to a new 13 CARDINAL at filing tiger global Exited positions in docusign zoom and sales force reducing its stakes and snowflake and Microsoft ORG . Coming up dozens CARDINAL of specs have fallen through this year DATE and there could be more to come. I'll tell you why. Next This is Bloomberg PERSON .
This back world continues to unravel at least four CARDINAL planned mergers to go public have been cancelled since the market closed last Friday DATE bringing the years DATE tally to 42 CARDINAL those concerns have pushed 89 CARDINAL backers to withdraw Plans to raise fresh capital for blank checks here to explain Bloomberg PERSON 's Bailee Lip Shelts so Bailey just how many of these are we talking about here and why are we seeing so many of them Yeah so as you saw the in the chart that we've seen kind of a growing number that is only kind of shot up since the start of the year DATE and that's really coming as we've seen over 600 CARDINAL blank check companies on the hunt for deals that are racing against deadlines that either really are built up at the end of the first quarter of next year DATE some going into the second ORDINAL Sign deals or chasing to find new target companies to bring public when you look at some of the breakups that we've seen in the last few days DATE . Those are either in things like electronic vehicles, cryptocurrencies, so a lot High growth technology companies that are ways away from generating any kind of eBadah and that's really something we've seen fall out broadly across the actual public markets so that's part of the reason that these plug has been pulled on some of these deals So About the broader market for spacks So that means that they're actually a partner Between the sponsorship team and the target company so you can you can expect to continue to see some of these getting across the finish line but the way these D-Spacks are trading 2022 DATE class is down immediate 48% PERCENT this Via the traditional IPO so you can expect to see some deals getting across the finish line but there is expectations for liquidations like we saw with the Bill Ackman's ORG back like we saw Sam Zella PERSON announcing last week DATE in addition To expectations that we will see some of these deals being broken just because these terms were agreed to back in December DATE even through April DATE when the market wasn't very different shape compared to where it is right now where there Many concerns about a potential recession and what lies ahead with expectations for the fed ORG to continue to hike interest rates. So question does this trend pick back up when or if hopefully the Get better or longer term our investors just souring on this as a means of doing business yes sponsors are really optimistic that they Announcing that they plan to push back two CARDINAL deadlines to sometime next year kind of the reading of the room from talking to investors is the idea that as the market rebounds there will For some of these experienced sponsors to find and bring private targets public but the expectation from the people that I talked to The futuration of facts in 2022 DATE or in 2023 DATE and in 2024 DATE will really look what like what it did back in 2019 DATE where you've got 50 to 60 CARDINAL specs Filing GPE to go public they're taking some of these smaller target companies public that maybe don't have the following to get a bank like a JP Morgan or Goldman Sax PERSON to underwrite their IPO and we'll find ways to get deals across the finish line but broadly speaking the expect An anomaly. Alright really interesting Bailey ORG 's thank you for covering that story for us alright coming up how conspiracy theorist Alex Jones PERSON made even more money after being taken Down PERSON from major social media platforms. Next. Bloomberg PERSON .
In the summer of 2018 DATE Apple Facebook Spotify Twitter PRODUCT and YouTube ORG all band the media company of conspiracy theorist Alex Joan Info PERSON wars. That means taking down many of its recorded broadcasts this after Jones PERSON threatened then special council Robert Muller PERSON . The platforms all sided some sort of unspecified content policy viol Their decision to deep platform the controversial host which was supposed to relocate Jones PERSON to relative obscurity as it turns out Jones PERSON ' audience didn't quite disappear in fact Business became more lucrative than ever. Bloomberg PERSON 's max PERSON chaf can take a deep dive into this for us. Max PERSON , how was this even possible? Well so there are two CARDINAL things that are going on one is that although the big tech companies banned info wars pages and in some cases eventually banned Alex Jones PERSON they didn't take down you know they didn't stop the circulation of these sandy hook related conspiracy theories they didn't Other people from posting Jones PERSON ' videos either in support or in criticism of him and as a result even though he was banned you've still seen quite a lot of Alex Jones PERSON on social media either in the form of him appearing on Contrary Types PERSON like Joe Rogan PERSON have Alex Jones PERSON on on on their shows and as well as just people out there criticizing him and then the other thing that happened is that you know Alex Jones PERSON used this and and turned it into a story line where Came this murder he does not make money through like a traditional media company as he makes money by selling products so there may be a situation where although his audience he's not getting a huge numbers he's making Money off of the audience that he does have because he's been able to activate them by spinning this narrative of murder dumb which as we learned during the trial it it simply isn't true he's doing really well financially You mentioned the trial of course Judge awarding the parents of one CARDINAL of the Sandy Hook victims tens of millions of dollars MONEY there's also a Texas GPE verdict another one CARDINAL coming up are these Text these penalties actually changing the narrative around him or are they making him potentially more powerful Well, it's hard to know. I mean, what you have, you have a jury award in Texas GPE . That's the 50 1 million dollars MONEY you may make.
Or are they making him potentially more powerful Well, it's hard to know. I mean, what you have, you have a jury award in Texas GPE . That's the 50 1 million dollars MONEY you mentioned. You also have this case in Connecticut GPE . In both of these cases, Jones PERSON has been found to have defamed the families and you have trials to decide on the damages and, and, in the thing is, it's very This is probably the end of Alex Jones' PERSON career you know he's gone too far but but people have been For a long time and you know, as I point out a column, you still have lots of people, lots of companies, basically enabling and and making money off of this Alex Jones PERSON has AA book that's coming out it's it's near the top of Amazon ORG 's best seller list there's a there's a documentary a very sympathetic That that that has just come out. So you have lots and lots of media types still kind of like I said eating off of these conspiracy theories in one CARDINAL way or another. And it's it's Conspiracy PERSON theories towards the parents was you know it's it's disturbing. Right. Oh yes. Well you can read more of that in Max PERSON 's story. Max PERSON , thank you for bringing that issue to light with us and Verdict PERSON from the upcoming trials. Alright, coming up. New analysis from Bloomberg GPE finds that Google Maps ORG routinely misleads people looking for abortion clinics but have more on that later in the show. This is Bloomberg PERSON .
Digital ORG privacy landscape in a post rural world issues with access Information ORG on abortion and the power that tech companies have to safeguard that information. Well, it turns out that even Google Maps ORG regularly miss leads people searching for abortion clinics. This according New analysis by Bloomberg News ORG . Let's take a deep dive on this with Bloomberg PERSON 's Jack Gillan PERSON who went through all of the data for us. So, tell us what you found, Jack PERSON . So, Emily, we wanted to just start out as if somebody wanted to find an abortion clinic, right? A very straightforward search that you would put into Google Maps ORG and when we did that for all 50 CARDINAL The results were pretty surprising about a quarter CARDINAL of the cases Not abortion clinics but instead what are called crisis pregnancy centers these places that are popular are encouraged to encourage women when they come in to not get an abortion and even though they often will masquerade themselves as a as a bonafide abortion clinic or some sort of doctor's office You know, this is very different than if you maybe type in certain maybe fast food chain or type of restaurant. It'll give you alternatives. In this case, post row. It's led to Confusion among folks so we've spoken with who believe Google they see the result they soon that it's an abortion clinic they go there and in some cases they're in for a pretty alarming surprise What is this practically mean for those seeking an abortion? So what it means is that if somebody is in need of this procedure and they go to one of these places and it's a crisis pregnancy center they can be sort of drawn into this process and be told Medical information that they don't need one. We spoke with one CARDINAL woman who in fact googled an abortion clinic who ended up going to a crisis crisis pregnancy And they try to convince her that if you just stay in this relationship with the baby things will get better So I mean it's unclear what sort of emotional and damage that did to that woman and other people who were seeking particularly if they are seeking an abortion there might not be people who are up to date on this post World and it really sort of raises questions in a quarter CARDINAL of these cases that we found what happens when somebody is in need and when they search and get a wrong What's google doing about this? So, they say that they have extra layers of verification in place. They have policies. They say that prevent this and people can report these around these results. You know, there's still the the critics we've spoken to ask, well, cuz Google doing enough, given that Results in your account Alright ORG , Jack Gillan PERSON , thanks for bringing that story to light. Appreciate it. Well for more on the implications and the power of tech in a post raw world and the impact on tech telehealth tech investing at large I wanna bring in Susan BBG PERSON adventures managing partner formally and executive with AOL ORG and guilt group just to name a few. So, Susan PERSON , you know, as we were talking about tech platforms have incredible power. In a post And obviously have some decisions to make about how they lose use that power. What are you most concerned about? From the perspective of an investor. As we see these issues play out That's a really good question. I actually think about it more as That that exist you know it's it's really clear that That women are not being served certainly in the States GPE that
You know it's it's really clear that That women are not being served certainly in the States GPE that have banned abortion But additionally I think that there's gonna be just a huge impact on on business overall So that always creates opportunity there there will be founders out there who are looking for That Enable companies to really address the retention issues that the recruitment issues Challenges PERSON and a post row era. I'm I mean this is there are two 1 million QUANTITY fewer women in the workforce today than there were So lot of women left for multiple reasons remote learning daycare centers closing and just the overall caregiver issues All to women. Those women have not come back. This Ruling is going to just exacerbate that. We're gonna see fewer women in the workforce. We're gonna see fewer women Sing a company's And we all know that gender diverse Perform better so until unless Companies find a way to Begin PERSON to mitigate this I I think we're gonna have big challenges So how was this impacting your own investment thesis? You know So it's health care, work, finance, education, climate, And All areas where diverse founders have been traditionally overlooked But one of the things we've learned during Not the 8 years DATE , 9 years DATE , we've been doing this. Is that people with lived experience as well as learned experience people who really understand the and users of a tech platform. The people whose lives are gonna be better for it. Our generally the people Gonna come up with better solutions. So, it's really for us, it's always looking a little bit Ahead of where things are right now To identify where the opportunities exist and and I think we're seeing them in multiple areas. Certainly telehealth. It's Interesting arena right now look in The restrictions on Abortions which used to demand that you go to a hospital or a health care provider in order to get prescriptions that was lifted because of COVID and those restrictions are still So that opens the way for a whole new stream of of telehealth solutions companies that are are both serving women in their own states but also women nationally. You mentioned the women that we've lost in the workforce post pandemic and there's been a big concern about female entrepreneurs Also back sliding in the pandemic you know for example in a tough market conditions investors might go back to what they know and you know continue to back this Stereotypical idea of what a founder should look like which is not necessarily a woman are you seeing evidence that female founders and entrepreneurs are you know more of a disadvantage than they were Yard of 2020 DATE . You know, I would say no. We have seen Or female founders pitching this year DATE than we did last year DATE . More last year DATE than we did the year before DATE . I think part of The reason is that we invest early. We invested seed stage even sometimes pre seed. Those rounds have been far less impacted by the market changes And that's where you find.
Those rounds have been far less impacted by the market changes and that's where you find most women playing too right they have not been doing this for long enough to have You know, seeing hundreds and hundreds CARDINAL of IPOs at this point. So I think for the time being women are slightly advantaged By what's been happening nationally in fact the The Part of 22 CARDINAL And increase in the percent of rounds that were led by women. What's your brother thesis about the market environment? Obviously, we know we're seeing a lots of volatility in the public markets, you know, we're hearing the potential for the hard word over and over again. We know it's impact Private markets that valuations are coming down. What are you seeing and how concerned are you about the macro environment? On the funding environment Yeah look I think that We told our founders to really think hard about how they were spending capital this year DATE not a good time to have to go out and raise a company is doing really well and And sees a path really capitalize on this moment in order to To do a giant round next year DATE . That's great. We're all for that but there are definitely gonna be a number of companies that are Companies that just run out of cash this year DATE because Venture ORG capital is investing far more solely We've seen it in multiple times now where we're rounds that ordinarily would have taken a month DATE or 6 weeks DATE or taking 2 months 3 months 4 months DATE and that's rough on Founders that's rough on companies And there are gonna be companies that that unfairly go under Alright well lots to continue to watch Susan PERSON . Good to have you back on the show. It's been a while. BBG ventures ORG managing partner Susan Line PERSON Thank you. Coming up galaxy digital wants to end its acquisition We'll tell you how. Next. This is Bloomberg PERSON .
Elan Mosque ORG isn't the only one walking away from deals in the crypto world Mike Novagratz PERSON has galaxy digital now says it's terminating it's ac In a bit girl $ one MONEY . 2 billion CARDINAL deal there citing bit goes failure to deliver audit and financial statements for 2021 DATE by a deadline to get out into this with our crypto contributionally bisexual Bit go is fighting back oh they certainly are and it's a really interesting deal to look at Emily this is one of the largest we've seen in the crypto universe galaxy digitals $ one MONEY . 2 billion agreement and they've been waiting the industry investors have been waiting a long time for this deal to close now we know that galaxy is looking to terminate this deal and Bitco ORG wants them to pay that If you look at the statements here by bit goes lawyers a they're saying that it it's pretty audacious that Mike Novagrats PERSON Would go blaming bit go on this murder they call it absurd and this is according to the partner from it goes legal team here both galaxy and mister no regrets have been Either galaxy One 1 million dollars MONEY termination fee is promised or it has been acting bad faith and faces damages of that much or more. So again, Emily, kinda PERSON like Twitter PERSON here. It's not Terminate a deal while galaxy shares have been under pressure they are up on the day so you do see investors really applauding the decision to let go of what would have been much more expensive Alright hang on Chanel ORG I wanna get into this and more with Cavita Gupta ORG General Partner at Delta Blockchain Fund ORG Avenger Capital Firm that focuses Blockchain PERSON What do you make of this latest development and no regrets trying to get out of this deal? I I generally feel like if anybody who is in the VC PERSON 's pace would look at the deal and say hey the valuations are different from the time the Which is very easily probable by the exchange of emails so could have never Actually doing the deal. I generally feel it's the market sentiments than anything else where the galaxy can afford it. Does needed at the same valuation or does it even make sense You know I'm so curious about what you think this means for deal making moving forward. This was such a massive deal on the space. A lot had to be set about confidence with the Galaxies and they seem to be busy but are these deals born out of a market that is trying to restructure or deals born out of a chance to build Longer market at the end. I feel like it's everywhere, right? So, you have deals which is like going basis making with institutional accounts to be able to help them have their private wealth managers do direct crypto or ownership. So, I Infrastructure play is going on with respect to crypto companies which are going ah which exist at the very big level but acquisition offers if the offer if the Early stage investments have also asked money or disappeared or backed Last couple of month DATE continue. But I think this is one of those cases where the valuation is still the old bill and the deal has to be done in the market Can get a better deal. Another deal on the market that is worth talking about is this idea that you can pay through red
Will the old world and the deal has to be done in the market where you can get a better deal Market that is worth talking about is this idea that you can pay through reddit for a way to purchase Ethereum ORG through an integration with FTX ORG . You know, Do we think that more social media platforms will partner with companies like this to get the job done? Yeah and I think this is not the first ORDINAL one. Twitter did it already. They just did it with bitcoin. I think we gonna see more and more back to adoption when you say they will be an extra layer of payment through blockchain if you directly wanna And getting new customers like how are you gonna get them and I think it's a very smart way FTX is coming and not only working with social Media platform but any payment, any place where you have an e-commerce option to be done. Just add another crypto payment system out there Alright Kavida PERSON thank you so much for joining us always great to have your take on the latest dramatic twist Community ORG group chain fund along with our very own Chanali Bosic LOC . Coming up. Snapchats one 1 million CARDINAL paid. Yes paid. Subscribers. What that means for the social giants? Efforts Away PERSON from advertising. We'll discuss next. This is Bloomberg Snap PERSON says it's paid subscription plan is a hit with more than a one 1 million CARDINAL users across The company launched Snapchat plus back in June DATE a plan that gives us early and exclusive access Features for 399 CARDINAL a month including changing the app icon and seeing who rewatched your story let's bring in our own Alex Barinka PERSON for more on this so kind of surprising that Snap was able Up this many Subscribers. What exactly are they so excited about Yeah and and doing it in just 6 weeks DATE since this product has launched so a lot of these subscribers are you can probably assume the younger users that snap has brought on to the platform and try to give them interesting exclusive new ways to monetize a one 1 million Emily it's the number that surprised me
Exclusive new ways to monetize a one 1 million Emily it's the number that surprised me but it'll Probably be a surprising but important number for snap is they move forward and look for revenue streams outside of kind of their believered Death. So How quickly and how much do you think Snap can expand this? I can tell you this is what they're focused on right now if you remember their last earnings report just over a month ago DATE they got hammered in the markets they basically came out and said our advertisers aren't spending money in the platform we're seeing a lot of softness on that side of the business when you think about snap Places they can really make money it's the advertisers and then it's users like this with Snapchat Now, in the social media industry, we know historically, it's been pretty tough to get users to pay up So this seems to be kind of an early win for snap. Historically, this is a company that Really good at rolling up products that they know their users would love and it seems like they're they're finding a little bit of a winning ticket here which again as advertisers tend to be a little bit pocket Okay so our other social media companies gonna try to do this and is it gonna work I mean Roger McNamee PERSON early Facebook investor has been pushing for a subscription model at Facebook free years you know could Instagram do this or TikTok ORG I think the question will be what value can they provide? So, snap is giving people like the ability to get to the front Celebrities ORG DMs when you direct message them when you look at Instagram NORP and Facebook and TikTok NORP right now it seems like they're rolling out Algorithmically Feeds PERSON or focusing on different types of content. So, I do think this is a place where Snap ORG is unique. It's smaller. It's a bit of a different platform than those other names that you mentioned and again, they've been laser focused on kind of doing things. Maybe zagging whenever everyone else is digging, focusing on Messaging whenever everyone else is focusing on broadcasting messages to the world. So, probably you need case here. We've seen the likes of like Twitter PERSON flirt A little bit. Haven't seen any news really of somebody getting to a one 1 million CARDINAL users paying for something within a social media platform So, this is my next question. What Continue to differentiate Snapchat in a sea of other options. Yeah so snap has been focused around kind of this idea of a camera company and that seems to be kind of where they're sitting. Ways to create content. They're filters and their lenses continue to be differentiated even though you see TikTok ORG kind of creeping up on Also they spend a lot of time really focusing on person to person Which again it is not necessarily the the main theater the home feed on a lot of other app Snap also again kind of is winning over this younger market. Now, Emily will remind folks that snap is a much smaller Erase It does seem like they are kind of really zeroing and on what that younger 18 to 24 year old DATE demographic wants and catering to They wanna talk and spend time with their friends one on one instead of just broadcasting content to the world So 1000002 months DATE does that mean 12 1 million QUANTITY in a year DATE ? We'll see back and knock and knock that's like 48 CARDINAL millimeter at the current number if everyone's Every month DATE . One% of revenue there Emily but we'll see if those numbers shake out and if folks stick Paying $ four MONEY a month for these extra features. Hey Alex Baringa PERSON as always thank you for stopping by. And that does it for this edition of Bloomberg Technology ORG Tuesday DATE we're gonna be talking about investing in clean energy with Jason Kelly PERSON ginko bio works as president Biden PERSON signs the inflation Wherever you get your podcasts I'm Emily Jane PERSON in San Francisco GPE this is Bloomberg PERSON .
The great sci-fi art of the mid 20th century DATE tea is the vision of the future with one CARDINAL distinct element and common A life for humans in outer space whether vacation
The great sci-fi art of the mid 20th century DATE tea is the vision of the future with one CARDINAL distinct element and common a life for humans in outer space Hey Shane on an exotic new planet or commuting to the moon for business Seem PERSON like it was just around the corner. Hey, here we are. I have century later and only about 500 CARDINAL human beings have ever left the bounds of earth LOC 's atmosphere. But thanks to a set of ambitious private companies betting on the promise of space tourism. That long awaited future could be here sooner than we think. For most of the history of space flight governments have been the prime force behind nearly every aspect from planning to funding to crucial election. But as early as the 1980 DATE 's proposals for commercial space tourism began to emerge along with innovative solutions for getting people there such as the wild concept of sticking a 74 CARDINAL person passenger cabin and the cargo bay of a Nasa ORG space shuttle Although various non astronauts have been selected permissions over the years DATE true space tourism didn't happen until 2001 DATE when an entrepreneur named Dennis Tito PERSON coughed up and estimated 20 1 million dollars MONEY to hit your ride with the Russian NORP federal space agency For a week DATE long vacation aboard the International Space Station FAC 20 years later DATE we're seeing a new contender in this final frontier of tourism Private companies. Coming up a private enterprise Still very high risk with the higher war potential reward But you know government is really out of the business of of flying people now and it's it's really gonna be companies like Elon Musk PERSON and Jeff Bezos PERSON and Richard Branson PERSON that that do that heavy lift Commercial space tourism is usually about taking the non-astronaut the private citizen And orbital or suborbital flight so you get a short amount of microgravity experience and you can float and take some photos and then you come back This was something that technology had gotten to a point where the private sector was going to make a business out of this. There are multiple companies that wanna get to the place where they fly people into space. The first ORDINAL of these is blue origin founded in 2000 DATE by Jeff Bezos PERSON using the autonomous rocket system new shepherd attribute to the first ORDINAL American NORP in space blue origin plans to launch up to six CARDINAL passengers at a time offering a verified treat of 62 CARDINAL mi high views and a momentary experience of weightlessness Booking ORG officially kicked off in May 2021 DATE with the very first C to be auctioned off for charity meanwhile Richard Branson's PERSON virgin galactic has also been pursuing a viable form of suborbital tourism aiming for launch in 2022 DATE once sir Richard PERSON himself has taken a flight So I got the whip on the team and we we'll see how he goes. The company claims to have lined up over 600 CARDINAL seat reservations so far including Justin Bieber PERSON and Leonardo DiCaprio PERSON . Virgin has projected that the final cost to the ticket will be at least 250 1000 CARDINAL Or roughly $50 thousand MONEY for each of the 5 minutes TIME or so of weightlessness that you'll get to experience although costly both companies offerings aim to make suborbital flight a regular form of adventure travel eventually driving down costs at scale to expand the customer base beyond the or Celebrities and billionaires. The third ORDINAL major contender is Elon Musk's PERSON SpaceX which has set its sites even higher on orbital flights which are Another level of complexity and energy and danger. When you go suborbital, if you're just gonna go up above the bond Carmen line which is 100 km QUANTITY or about 62 mi You will need to get up to maybe 5000 mi an hour TIME to get up there and you go basically straight up and then straight back down if you don't have the reentry heating that you would see coming in from a normal so when you go orbital I don't care if you're a baseball or a battleship you gotta go 17500 mph QUANTITY not just 1000 CARDINAL mi an hour. The energy is involved are much greater. By doing that, SpaceX has gone another level up and that's what they're doing with the inspiration for. Dot com for your chance Go to space. Inspiration for is the first ORDINAL planned all civilian mission into orbit slated to launch in late 2021 DATE
Your chance to go to space Inspiration for is the first ORDINAL planned all civilian mission into orbit slated to launch in late 2021 DATE . The crew will bring their own set of diverse perspectives and backgrounds and experiences to test how group of different people namely people who aren't professional astronauts, good affair in space. Until now astronauts have had to be physically perfect and this mission is changing that and so I feel incredibly honored to to be representing those who aren't physically perfect. At age 10 DATE I was diagnosed with bone cancer and I was treated at Saint Jude Children's FAC Research Hospital And I spent a year there undergoing intense chemo and also surgery that ultimately saved my leg. I now work at Saint Jude FAC as a PA physician assistant and I work with leukemia lymphoma patients. The kids we work Are are so brave and they are very excited to watch me go to space because this is showing them that you know they they're capable of doing this as well Hey Lee PERSON along with three CARDINAL other crew members we'll spend 3 days DATE in space orbiting near earth every 90 minutes TIME before landing back off the coast of Florida GPE well when you think about access the first ORDINAL The astronauts for the United States GPE came from the test pilot side So, women born allowed to be a part of that. We have somebody in their 20s DATE , somebody in their 30s DATE , somebody in the 40s DATE , and somebody in their 50s DATE , and so there can be access in all kinds of way, whether you're talking about age, whether you're talking about gender, what you're talking about, race and ethnicity, and all of those The first ORDINAL time, you know, people are going up into space and not sent there by superpower like the United States GPE or Russia GPE or China GPE . Well, that's like really significant. And you know you've you've gotta you know be very thoughtful about it. The whole game plan right now is to make space like really affordable and you know accessible for everybody so you can have fishing buddies going to space someday but the first ORDINAL is special. And so with that we wanted to have you know a cruise selection process that could make space available to everyday people. Hey Facebook Into space is only the first ORDINAL step for space tourism. The next challenge is what to do and where to stay when you get there. Axium space is planning to launch the first ORDINAL segment of a new commercial space station in 2024 DATE there are two 1 billion dollars MONEY project called act station will become the first ORDINAL free flying private international space station. Or to use a more consumer friendly term. A space hotel. Actually miss the only company out to make your space stay a little more comfortable. Igloo aerospace has been building what they call expandable habitat technology. Like there are B 330 uninflatable pod module that expands once in orbit. Wanna attach to National Space Station ORG right now. They've been testing it and you take it up in it and it's rather small and then you inflate it and it seems to be working very very well. This is likely to be the first ORDINAL kind of Hotel that you're gonna see up in space. First ORDINAL of all, it's easier to carry instead of this giant tin can with with all of that. You play the Wolver You just blow em up and they they get a nice, big size for about, you know, half CARDINAL the list and half CARDINAL the weight probably. But even a space missions become accessible to civilians. But risks of going to space are incredibly high And you could die a 1000 CARDINAL ways that we can think of and a 1000 CARDINAL other ways that we can't think of This is Michelle Hanlon PERSON she's a space lawyer at the Mississippi School of Law ORG focused on protecting humans in outer space no I'm not an attorney for any of the space tourists so I haven't been privy to their private contracts but I can tell you that the FAA ORG requires certain waivers to be in those contracts so for example the FAA ORG Well, we're not going to make you make your spacecraft to a certain safety level. We are going to make you spacecraft operator. Make sure that you inform your space tourists of all of that hazards that you know of that I'd imagine a very long way where all the ways you can die in space. And you have to understand that there's health risks and you have to indemnify the US GPE government if you are launching the United States GPE . So those are things that we know is Facebook tourists has to sign and has to wait. So now let's go back and think about our space flight participants. The FAA ORG calls space tourists space flight They don't call them astronauts. Why is that important? If you're not an astronaut, there's no.
Like participants. The FAA ORG calls space tourists, space flight participants. They don't call them astronauts. Why is that important? If you're not an astronaut, there's no obligation to rescue you. I have something goes wrong. It's a lot of money to set up and rescue lunch. Can even be dark it's something really important to think about and that difference as we as we cross this threshold from having astronauts and space to having real people like me in space And when we're able to make it to space reliably enough there's still a host of other legal and ethical issues to consider before space tourism can truly take off There are so many gaps in space law that we are gonna have to put in a lot of certain basement ideas and so for example the outer space treaty is a treaty that offers principles and guidelines for state activities Activities of national governments. About humans in space. So now, something goes wrong. So, let's think about all the times hotels on earth are so, right? So, slip and falls. You step on something in the bathroom. You see the hotel and it becomes a private Related to that The way and the outer space treating the outer space regime have set this up is that anything that happens in space first has to go through a diplomatic channel before you think about suing in a court of law and so every single slip and fall in a hace in a space hotel is a diplomatic nightmare. And so we really need Figure that out before we before we start sending a lot of people there. Human rights in space here we don't think about a human right oxygen because it's Kind of all around us some free it's not in a space hotel What happens if something happens in the oxygen depletes? Who gets the oxygen first? And then of course, let's not even think about the labor. How do you treat your labor in a space hotel where that person it may be there 2 or 3 years DATE without coming To earth. So a lot of things to think about. Please habitats are more likely in the near future to focus on research missions and be a home for experiments that can't happen as easily back on earth. Our space hotels I think they garner a lot of headlines and a lot of news But at the same time, that's not the first thing that you're gonna see happen. They don't offer the compelling business case. I think that you'll see from a place that wants to manufacture pharmaceuticals or a new type of crystal or Type of filament or fiber optic cables and and other things that you can do at micro The things that are actually You know I high value Finished good when you get that back to earth and you sell it for a very very huge profit margin. That's what's likely to happen in space as opposed to having AA real estate platform that you sell to our tourists at Space Hotel ORG . It's really interesting and it will probably happen but it's not likely to be at the forefront of space commerce. Even if space hotels are right around the corner don't get too excited about booking a trip in one CARDINAL Millionaires PERSON and billionaires and that sort but at the same time, you know, the point was made that in the early days DATE of airline trips, that was also a completely unaffordable ticket for most people Those people who flew were people of means and overtime it becomes affordable to the masses and I think that's the goal for all the entrepreneurs in space as well to get those costs down to a point where it's not 10 1 million QUANTITY Five 1 million dollars MONEY or $300 thousand MONEY ride in this horrible space when it becomes more like buying a first ORDINAL class ticket to go to Europe LOC from the United It GPE . So that that's the goal and you know the question is can can we get to that point? Given the immense operating cost of getting to space it maybe years DATE if ever until space tours and becomes a profitable venture for any of these companies Virgin PERSON galactic the only publicly traded company of the three CARDINAL has had a particularly rocky year DATE initially riding on the momentum of a spec deal but more recently beset by launch delays and major funders including Branson PERSON himself selling large quantities of their stock
Major funders including Branson ORG himself selling large quantities of their stock at the company. Space is really, really, really hard and it's an absolutely cliche but it's one that happens to be very true. It's just really hard to do. That's also the reason that you've seen Ways that you know virgin had talked about flying years DATE and years ago DATE and it became such a crazy point that Richard Branson PERSON actually stopped talking about it when he was asked because it was never gonna be when he predicted but it's not instrumental and you know, investors have stepped up because this is something that is doable Despite the astronomical dangers and costs of getting to space it may ultimately follow the course of other once fanciful modes of travel Right Brothers ORG having you know what was by modern standards a very unimpressive first flight you know a kitty hawk I mean you know you had like less than 20 years later you had your first ORDINAL airborne ambulance is being used to to save lives fundamentally the world is a more interesting place when people can go and dance them on the stars and such Hey Hey And we wanna go out there and see what's out there. That I had in 1969 DATE of seeing normal human beings traveling to space it's finally beginning to happen when you get a bunch of people up there and they can all see it for themselves that'll create even get another revolution And how we treat our planet and what we think about. So 2001 DATE came and went without quite looking like Stanley Cubert's PERSON ultimate space fantasy 2021 might finally be the year DATE we're catching up Go to Disneyland FAC . We're jumping your convertible then take highway one up the coast. Or maybe make a pilgrimage to Yosemite. Oh very fine choices. But if you're the kind of person who revels in our planets extremes. 395 CARDINAL that you're after. One glorious road will carry you from death valley's desert floor to sky high views of Mt. Whitney LOC You can see the 5000 year old bristle cone pines. The oldest living organisms. Or the bizarre two CARDINAL for towers of mono lake. And true to California GPE 's boom and bust spirit. Ghost out of Body. What a novel experience to find an empty American NORP city where all the businesses are shut down. To do 395 CARDINAL upright it helps to have a guide In mine is a man named Yon PERSON And it's true Aaron PERSON .
To do 395 CARDINAL upright it helps to have a guide And it's true Aaron PERSON The hardest parting dog of all time. John agreed to show me some of what 395 CARDINAL has to offer. But only if we agreed not to disclose any locations My name is Yance Restaurant PERSON . I'm an industrial designer out of LA GPE and I spend a lot of time camping and a lot of time in the Eastern Sierra LOC . It's a place I love and sometimes I'm known as 395 CARDINAL North because Yep my Instagram account and I don't like to be known as that but I'm trying to use it to set a good example Do more with it than just social media. Where did we end up? We got here Layla. I was gonna be sure where we are. This is BLM ORG land right on the outskirts of National Forest ORG . One CARDINAL of my favorite places in the world Everything outdoors wrapped into one. Oh man. We have so much national forest in public land That Literally just cruise out and find a place to camp. It's ours. What i wish was mine is yan sweet truck. It's a 2019 DATE Ford Ranger PERSON has about 200 watts QUANTITY of solar in it and a fridge and has everything that our RV ORG has except for a toilet. Yeah. But just on a smaller simple scale. Is you drivers around day to day in LA GPE ? Yep. And then just roll out when you want. It's my daily DATE driver. And then when I'm done with work I can just Bail PERSON and go camping. So, the camper basically has only what I need. Think of it as backpacking with a car. Yeah. The fridge has a couple compartments This is just a kitchen box. Utensils and a bunch of stuff. This one has just dry food and when you get inside, there's a bed. The bed What's up so you've got tons CARDINAL of room in here Miss Annie PERSON . It's phenomenal. If you wanna pull that over That was cool. We just popped that up. So Home on Wheels. Yeah. This is my vacation house. Dude PERSON , it's so nice Even with his nomad lifestyle John PERSON faces the same big question as the rest of us. Do the internet and smartphones have to ruin everything when you find the super special beautiful spots is that You busted out a map and like looking where might be cool to go or is it where the mouth and just getting to know people of the locals and If I see a dirt road, I just wanna go down. So, a lot of us just aimless rambling. It's a desire to just see something. Check that out. For some reason it's more fulfilling than Getting a recommendation from somebody or Tons PERSON of apps and websites now road trip apps camping apps They proliferated. The knowledge is accessible on the internet, right? I I used to fight The geo tags and and I would get really pissed off. Why are you posting this place? It's gonna blow up. It's gonna get trashed Now I've realized that you you can't fight it. The internet has just shrunk the world. So we're not gonna stop it. We're not gonna stop people from Going there. So, I'm a lot more focused in conversation now with Trying to set a good example. When you go, pick up your trash. Pooping out in the wilderness don't leave your toilet paper on You know, make sure you follow, you know, good steps for leaving no trace. There's a thank you for this quick guide to pooping etiquette. We made yan heron and lemmy some tacos. And we all took in the night sky And knock back a couple of drinks.
They wanted to know How did the alleged rapist hit the keys how did he get inside that he'd BMB And when they found out that the keys had been lifted the corner bodega that then created you know a problem of liability for your BMB they didn't have a policy around key exchange they didn't tell their hosts how they did or didn't have to hand keys over to guests as they were arriving Sophia Airbnb ORG they also you know they wanted to know what was gonna be said in court they wanted to know if any media were gonna pick up on this story And they wanted to know what the illegal liability potentially could be. Later the alleged rapist was indicted and the supreme court ORG in New York GPE and Airbnb ORG sent a staff member to find out if the company was gonna be mentioned in any of the court records And it wasn't. It wasn't mentioned in the police report. It wasn't mentioned by prosecutors. There's no mention of Airbnb really in any public record. This case has never been reported until now. And you know free Airbnb that was kind of lucky this case never landed in the media And you know 18 months later DATE when this woman's lawyer reached out to the company They signed a settlement for seven 1 million dollars MONEY . And part of that settlement There's a cause that says she cannot Assert PERSON or imply responsibility on the part of the company. We've spoken to legal experts who indicate that what this really did is gag the woman from saying I blame Airbnb ORG . Airbnb is one CARDINAL of the few companies in the world that has this like online offline kind of hybrid Where you have users who Meet online and then Meet in the offline world and stay under the same roof. And that means that the company at the end of the day DATE really has to take more responsibility than other social media platforms might do. Will there be terms of service that really means that whenever there's a dispute between hosts and guests and the company this is all handled behind closed doors Arbitration. Most of these cases don't even make it to the courtroom. And when they do the company will settle them. So it doesn't go on through the courts. And Means PERSON is that there hasn't really been a legal president that sit to determine what your BMB ORG 's liability is here. You know, is it really responsible for when things go wrong inside its listings? What I learned over the course of my reporting is that this is anything but simple This is a complicated nuanced area there are difficult trade offs here The company also has to have Tough conversations about policy. Airbnb's business model is based on strangers trusting one another We often hear from the founders and the chief executive himself saying trust is their number one CARDINAL priority. I've actually heard Brian Cheski PERSON , the chief executive of Airbnb ORG , talking about how he didn't build a website or a platform that allows people to stay in each other's homes. What he built was a community that trusts one another And when that premise is undercut Airbnb ORG 's entire business model is under threat.
Phones PRODUCT earth view Sounds far fetched at the moment doesn't it But you know We may be seeing ads like this in the not too distant future. Living away from earth has always captured our imagination as well as providing the basics for survival these ideas are a symbol of humankinds unique creativity and ambition This advance bees or space station will be headquarters for the finalist sent to the moon today DATE the idea of multiple outposts where we can live and work in space has never seen closer As a species having a path for our future. And the mission to create these habitats is well underway as private companies get ready to take that next giant leap The international space station it's the only space habitat we have One CARDINAL of the first places they take you in the ISS ORG is the coupon so you can finally look at the earth in all its beauty and it I don't care who you are it's always stunning and shocking it's it's amazing because that's the view you've been waiting for your entire life. It passes over 90% PERCENT of the world's population without most of us ever realizing Estimated cost of 150 1 billion dollars MONEY it's the most expensive object with ever built. You think about like the 16 CARDINAL chapel, the pyramids, and the birds Khalifa PERSON or or to take your pic. I mean, it far outstrips those. It's the one and only Us real human outpost we've had a constant human footprint in orbit for almost 20 years DATE because of the international space station. The collaboration between 15 CARDINAL countries started construction in 1998 DATE and was peace together in space over the course of a decade Since 2000 DATE it's been a permanently crude research laboratory a space habitat that's allowed humankind to live manufacture and explore beyond earth The overarching achievement of the space station has been Education. It is educated us about how to do research. It's educated us about how to live. It's educated us about the harshness of the environment that it is in and it's about learning I think. People say what was one of your favorite parts about being up there I'm floating everywhere I went but your first impressions for ISS ORG certainly is It's how big it is. The ISS ORG is the size of an American NORP football field with most of that footprint taken up by eight CARDINAL solar eras these provide enough energy to power 40 CARDINAL homes The station has an American NORP side and a Russian NORP side as well as contributions from other nations like Canada GPE , Japan GPE , and the European Union ORG . Astronauts on board can pass freely between these sections their living and working areas are made up of modules each four CARDINAL . Two metres in diameter and in total they have the same volume as the Bowing PRODUCT 747 The three CARDINAL main labs destiny hope in Columbus GPE are conducting up to 600 CARDINAL ongoing experiments at anyone time And while it's been a collaboration between governments to build in maintaining ISS ORG it's next chapter will rely more on private enterprise Very remarkable day. Opening the international space station to commercial opportunities Marketing these opportunities as we've never done before. Managing and maintaining me, I assess cost $ three MONEY . 4 billion CARDINAL a year. That's over
Cost $ three MONEY . 4 billion CARDINAL a year. That's over half CARDINAL Nasa ORG 's space operations budget Aging hardware and space debris will only add to these costs which is my Nasa ORG is now hoping to pass some responsibility for the station overtook commercial companies Like to see a robust commercial marketplace in lower thorough but we're space stations exist outside of Nasa ORG the goal being that Nasa ORG could be a customer and we wanna have numer Providers ORG that are competing against each other on cost and innovation. With federal funding proposed to stop in 2025 DATE opening the station to private enterprise with free up resources for the space agency's ambitions to return to the moon and journey to Mars Transferring NORP to a more commercial model is allowing industry to take over many of those areas that Nasa ORG has traditionally been responsible for like the design and operations and maintenance of space systems but the most exciting part I think is new opportunities the iPhones ORG would have never come from the government The base technology came from the government but the way it's used, the way it interacts with consumers, governments, aren't really built for that. So, I think that would be exciting to see how private industry uses the same technology or or the same systems within using in a different way. Every NASA ORG achievement has been the collaborative achievement of Nasa ORG and industry. What's going on right now that's a little bit different is Nasa ORG is turning to companies not to direct them what to do but it's turning to companies to build relationships with them because those companies are attracting investment from On space sources and are bringing a different kind of innovation to the table. In the shadow of Nasa ORG 's sprawling Johnson PERSON 's space center the headquarters of startup axium space might seem a little modest. But their goal is big to build the first ORDINAL commercial space station Buy a former ISS ORG program manager the team has been involved in every mission to the station since its inception We know it has to be much lower cost operate on orbit than ISS ORG is today DATE . So, this is key to continuing the heritage by SS. It's to start there so we can evolve everybody to the next platform. I like this to the internet. So, the internet was created. We got very excited and any kid with a good idea and just the basic programming skill Could go build a program to do something we have huge companies that grew out of that and still today DATE there's new ideas new things being built. The thing about a micro rabbi environment is it's limitless. It's like the data we have access to on the internet. Is limitless. And it is not immediately obvious to us. All the benefits that that's gonna entail. But over time it will become very very obvious. By 2024 DATE Axe implants to send a central node to attach to the ISS ORG . That will make up the core of their new station Will be followed by crew quarters for 16 CARDINAL people and research in manufacturing modules When the eye assesses retired this will break away an additional modules with a lifespan of 30 years DATE will be added and swapped out as they age using a robotic arm Hoping to do all of this for one CARDINAL 50th the cost of the ISS ORG I mean, when you talk about our vision, it sounds really simple. It really is about The thought process and the cost So that anybody that wants to take advantage of our place in orbit and a microgravity environment can do so and that's really it. I need to go towards my feet. Fantastic NORP vehicle but one of the big things is they have a quite a few Components outside Reduce size of components and so our design is gonna have all of the components you're gonna be in the pressurized environment So, we know what the basics are. You know, water food Clothing, life support, and we know how to handle those.
The components are gonna be in the pressurized environment So, we know the basics are, you know, water food Clothing life support and we know how to handle those but now the next step is how do we make it more intuitive and we want to now take advantage of the technologies and the and the capabilities have the day DATE to build more luxury into the experience the objective is to make the environment the background for all the users your everyday doing Experience on ISS ORG and what the team brings to the Able to build that environment. You won't worry about that 321 CARDINAL , release, release, release. Space tourists with tickets starting at 55 1 million dollars MONEY for a 10 day DATE mission One CARDINAL part of the commercial space station market that they think could be worth 37 1 billion dollars MONEY over the next decade DATE Our first ORDINAL commercial customers are countries who have astronauts in space and want to expand their activity in space and countries who do not yet have a human space flight program who want to send people up and we've now got both research and manufacturing companies who Do work with us while we're at the International Space Station FAC and on our platform after it separates from my SS. Human space flight is particularly exciting because it's at slice of space that is really nice and it hasn't undergone the crowding that satellites have had it hasn't already had that explosive growth it's really ready for that now The first thing I'm really looking forward to seeing happen is the face of our first ORDINAL astronauts on orbit looking back down on us and knowing that we had a hand and sending that person to space and ultimately the separation of ISS ORG when it's ready to be retired in the orbited and then we continue in space independently for That is a stepping off moment for humanity. It's almost like when Neil Armstrong PERSON put that first boot on the moon. This will be the first ORDINAL time that we've gone from a platform of learning how to live in space, to building our permanent home and space. Other private companies also want to use the ISS ORG as a starting point for their own ventures. Aerospace already has one of its inflatable structures attached to the station and others including Sierra Nevada ORG and Nanarax PERSON have put forward proposals Habitats PERSON are expensive. I think it's a fall steak economy to say, okay, we're done with the international space station. Let's move on to commercial platforms. What I think is much more likely and realistic in what Nasa ORG is certainly driving toward is an incremental transition Commercial platforms attached to the space station or work collaboratively with the space station the next chapter of cannot occur Be active engagement of companies. That active engagement might not be as customers might not be as drivers it might be in service of government mission objectives we will return American NORP astronauts to the moon not only to lead behind footprints and flags but to build the foundation we need to send Americans NORP Mars LOC and beyond. This proposed mission along with SpaceX PERSON 's own ambition to reach a red planet his opened up a longer term market and some companies are already thinking beyond orbiting habitats like space stations to actually building on a surface of other planets I was working in a firm designing skyscrapers and you know I saw Elon and he landed his Falcon ORG X rock in the middle of the ocean and that for me was a trigger I thought wow this could actually happen and it's always been my dream to put a building on the moon or Mars LOC If he's going out the piece he's going it could definitely happen within my lifetime and I wanna be the one to build it. In this warehouse alongside startups from across the US GPE architecture firm AI ORG space factory a refining the production of Marsha a four CARDINAL story structure they created for a Nasa ORG competition to design the next generation of space habitats on Mars LOC But what we were given was a
Space habitats on Mars LOC . They think the best way to build a habitat on Mars LOC or the moon is to use what they call institution Sci-fi movies you might see like glass and steel domes on distant planets but the reality is to ship that kind of material to the moon of Mars LOC would be The idea is to send a 3d printing robot which can then harvest the materials you find on a site and build with that. Usable print material is a mix of bio polymer made from recycled plastic or plants like corn and sugarcane and bass salt a rock found on Mars LOC and Earth Rock LOC that gives us it's incredible strength. We've tested this material. It's three CARDINAL times as strong as concrete in compression and it actually has what we call it a tensile capacity prevent itself from being pulled apart which is something concrete's not very good at. You need to think at all times how do you optimize the amount of material that you use and and that's also Optimize form. It's very very thin. A better strength that the agnes and and that's why this is shaped the way that it is. Shape as well as the nested shell structure also accommodates for extreme differences in pressure and temperature on the surface of Mars LOC More research still needs to be done to find out how print materials could be gathered and how threeD printing would work in a unique environment of space You're dealing with a completely different set of physics and environments which is very harsh. Cold, you know, the low gravity, the vacuum of space, you know, and and finding solutions for how to build their, or do anything in space, just requires a high degree of innovation. There's no such thing as brute force when it comes to space, like you need to think about the problem Find a very elegant lightweight cost effective The next challenge is really going to places on earth Literally taking the dirt that we're finding on a site and beginning to print with the dirt. We have to perfect this technology on earth And then we go prove it out on the moon And then finally on to Mars LOC . The first ORDINAL customers could include NASA ORG and companies like SpaceX who would lease out these structures for individual missions but before that AI space factory hope their technology could be monetized as well as transformational here on earth The challenges of building on March 4 DATE is to kinda make this jump in construction technology which we can now apply on earth to build more sustainably. So, rather than building with steel and concrete which are these manufactured, very energy intensive materials to go to a site have a solar powered array that would then allow our threeD printer to print in Sustainable way possible. And we never would have found these ways. There wasn't for the challenge of building in space. Three. CARDINAL One. Hey humans have now been Living and working in space Than 15 years DATE and if we want to keep that up Do habitats need to look like? And frankly, they can be larger, they can be small, but the future of space habitats really to me comes down to the ability to persistently maintain human presence. Whether that's a few people or many people. That seems to be the dividing line between where we were before and where we wanna be in the We have to learn how to benefit from what we do on orbit and bring those natural benefits back home so we help ourselves out on the ground while we also learn to live somewhere else and it really at the very deepest level is about survival or species so I get pretty excited when I spin a few moments thinking What we're off to go do cuz this really is the first ORDINAL step to learning to live live off the planet. That first ORDINAL step is just to start of our journey to create a lasting legacy in space. While commercial companies may be stepping into imagine what these new space habitats look like.
First ORDINAL step is just to start our journey to create a lasting legacy in space While commercial companies may be stepping into imagine what these new space habitats look like is what's happening inside of them that may unlock the future of space industrialization. On the next episode of Giant Leap ORG we'll visit the private companies who are looking to build their business around manufacturing in space Using the unique properties of microgravity they plan to create new materials with extraordinary qualities that can't be replicated on earth Including new manufacturing techniques that could change how we build large structures in space and even unlock the ability to threeD print for human organs But the four CARDINAL lowers will be can become a new industrial center we're going to need to take another giant leap This is how it used to work. A real estate agent would lock in the client. It stage the place hold an open house every single weekend DATE and hope that the right buyer walks through that door The first ORDINAL time I received a lead through Instagram ORG my mind was blown if you're seeing something and a neighborhood that is established you have 2 to 3 days DATE after the open house and this market to make an offer our world has shifted so much folks Getting comfortable doing business either through social media or 100% PERCENT virtual social media like everything else it touches has turn the real estate business upside down You've heard this trope before millennials aren't buying and owning as much as their parents generation beat a car, a diamond, or a home, but the lack of ownership is not always by choice. In 2018 DATE , a survey found that 89% PERCENT of millennial Americans NORP want to buy a home. They just can't afford it. As of 2019 Millennials of all stripes owned only five% of US GPE housing compared with 15% PERCENT for gen Xers Millennials haven't been able to make these big ticket purchases the same way as their predecessors did. Now, this is down to the financial crisis. We have rising student loan debt and a higher cost of living. Now, millennials are getting older. They're earning more money and saving more. So, now is Airbnb ORG wants something to call their own. I got married and I have a child so you know looking for more space and thought about the conventional route of young and single living the city and then move out to the suburbs when you have a kid and a wife I've seen a whole bunch of my friends just move on down to the west palm GPE beach Miami GPE area Austin Texas PERSON so they are certainly moving out of the city but space was top of mind for the moving out We live in Williamsburg for about 16 plus years DATE and a week to you in the pandemic we just realized we needed more so we started looking for a house right away Now letting go in New York GPE which is about an hour and a half TIME from New York City GPE . Instagram accounts like Circa Houses ORG and cheap old houses.
For a house right away Now letting Goshen GPE New York GPE which is about an hour and a half TIME from New York City GPE . Instagram accounts like Circa Houses ORG in cheap old houses offer a glimpse into the perfect suburban life. Often it a price point not too dissimilar to what adults pay for rent in major cities. By the end of 2020 DATE New Yorkers NORP who didn't flee paid an average of $ 2700 MONEY a month for an apartment even as rent prices plummeted during the Emic. Millennials make a large percentage of spending right now and that makes them a valuable consumer for brands. That means they're being coded by everyone out there to spend with them. They grew up online they're comfortable with pretty much anything that you can do there and that's that's buying things, selling things, Craig PERSON 's list, eBay ORG , all that. Making $ 100 MONEY purchase on Craig PERSON 's list or a Purchase on eBay WORK_OF_ART . It's not that much of a leap to go even further. If you're buying AA fancy piece of jewelry or a house for a one 1 million bucks MONEY . The uptick in home demand fueled by the pandemic combined with record low interest rates has made home buying extremely competitive over the last year DATE so much so that some millennials look to social media to shop and actually buy their first ORDINAL house site unseen. I saw sort of something on my Instagram feed and you know, clicked and we ended up seeing this house. The houses weren't really being shown at that time 'cuz we were in full lockdown. We became really interested. One CARDINAL YouTube ORG video, 20 CARDINAL Z Low photos. That is it. The red hot housing market spells opportunities for developers targeting this demographic getting eyeballs strictly through social media. People are not looking in the the back section of the times anymore for for real estate listings. Our demographic is between late 20s to mid 40s DATE and that demographic is spending a lot of time on social media and they're doing a lot of shopping via Instagram and other social media platform This is Joshua Gelb PERSON in Pene Hamburger During the pandemic, the two CARDINAL New York City GPE based developers started Neville House PERSON a new construction project 2 hours TIME north of the city. Unlike most traditional real estate listings the pair bypass the use of a broker and advertise their homes directly on Instagram ORG no fees no commissions The higher broker work with them they would do showings on site now you basically put your renderings on on Instagram NORP and within an hour TIME you have 15 20 CARDINAL replies saying can I come see it directly with you and let's see you tomorrow and and it's just completely changed the the game most people have that image in their head of the quick essential upstate Said PERSON in the words we've definitely tried to tap into that and create something that's attainable for these people say you can have that you can be swiping through Instagram NORP and I can be your home too There's been quite a proliferation of these directing consumer brands there's just tons of them out there it's not that hard to start up a website that's that sells things and get things manufactured for that e-commerce platform so like all birds with shoes Casper GPE with mattresses or Warbie Parker PERSON with glasses. All of that means a lot more opportunity for brands in the online shopping space. So, it's natural that real estate would wanna get involved as well with these big ticket items. 10 years ago DATE the broker would drive the search. Now I think that my clients text me listings. They have alerts. They find things quicker than we do sometimes cuz we're out and about. I'd say that the buyer is much more involved these days DATE . Selling is creating brand new ways to shop. So let's look at vintage clothing for example. There are sellers on Instagram ORG finding successful ways to sell one CARDINAL of a kind items. It's that fleeting nature, the efferral nature of social media. You post the item online and whoever's first ORDINAL gets that one CARDINAL of a kind item. Real estate has similar scarcity to it. There's a one CARDINAL place to buy. It's one CARDINAL home, one CARDINAL apartment, one one CARDINAL thing. It's one CARDINAL of a kind. But the rise in social media real estate isn't just about the instant gratification researcher Andre Perry PERSON who studies economic inclusion at the Brookings Institute ORG says social media has evolved from the days DATE of online hangout spaces and mood boards
Researcher Andre Perry PERSON who studies economic inclusion at the Brookings Institute ORG says social media has evolved from the days DATE of online hangout spaces and mood boards to a powerful change agent Primary PERSON source to get news and information but it's not just about social media it's about the movement that we're in the racial justice uprising really gave people a sense of worth and empowerment and so people not only are getting information about what protects In the long run from economic shocks things like wealth in his research Andre ORG found that not only are more millennials buying homes during the pandemic the rate of home ownership among black millennials are at historic highs The fastest way to accumulate wealth in this country traditionally has been through homeownership. Millennials in particular are saying, hey, I want protection. I wanna live longer. I want my education to go further. Let me acquire wealth and in the best way to do that is through home ownership. When the pandemic hit many of the amenities or the comforts that came along with those living conditions were gone. Folks couldn't go to bars and fancy shops and so you saw instead of people going out, buying clothes, they saved their money Bob Property PERSON and outside of the city generally people are moving to the suburbs to rural areas places where home prices are a little bit cheaper many home buyers are looking for houses outside the major metropolitan areas additionally many home buyers are looking for direct outdoor access and added space as the uncertainty about the virus Millennials are also looking to influencers not just for the latest trends in tiktok dances but to partake in important conversations be it about politics or personal finance or anything in between Real estate ownership let's start small let's don't be scared to start small Written a big house in the hills in California GPE like most artists do buy you won us on the flat. Meet folks like Brandon Rule and Charlamagne The God. With a mysterious Process LOC that only a few people could teach me. Now, i can easily log on to clubhouse or Instagram NORP and find literally lessons on how to purchase a home but done in a with Savvy and Finesse. Today DATE , we're gonna make Greenhouse ORG . Heather having bought her fix her upper sight on scene also look to internet personalities to help figure out how to modernize and to make sure her home was also an investment Lot of confidence. They make it look super easy. How we could do all of those things ourselves. My husband just installed the laundry shoe which is something we never would have thought of if we didn't see an influencer do that and and how how easy it actually is. Really simple. You can do that. If you have any questions, go ahead and message me. And in the case of Neville House Josh PERSON and Pele PERSON hope that buyers see these homes as potential secondary income Working these young families look at these products or look at our homes and say here's a turnkey this can serve our family but this can also be the perfect rental. We've tried to strike a balance in the design of the home for you know working well as a family home. That's gonna be lived in and also working as a as an investment A lot of this is points to how millennials can utilize and leverage social media to their benefit but it also speaks to again this moment that folks want freedom. So, millennials are really stepping up to this real estate game And taking ownership and building well Of course, not everything is as it seems online. While social media can be a useful tool for learning there's still a lot it can't tell you about the home buying experience or living in the suburbs for that matter. You going into it by Jeannine for a lot of renovations. We kind of thought if we buy it at 450 CARDINAL we could
Living in the suburbs for that matter. We knew going into it by jitting for a lot of renovations. We kind of thought if we buy it at 450 CARDINAL , we could put two CARDINAL , 300 1000 QUANTITY into the house and really make it ours and our own. To replace in this kitchen and update our built in deep fryer which was Not in the listing photos we kind of got into the house and we realized that budget was completely That we have a lot of people who see our design on Instagram NORP they say I love it can you come build this on my property and then they'll send us a lot which they bought site unseen during COVID and because of site conditions or zoning it's virtually unbuildable I think we all know that what you see on Instagram NORP and what you see in real life or two CARDINAL very different things. So, while we can definitely as brokers create these fantastic narratives, the one CARDINAL recommendation that I would give is, do your homework. Don't believe You say that's not to say that you know there's dishonesty or anything where people are trying to manipulate you but not everything you see is accurate This shift towards social media house hunting may also help to bring equilibrium to a market that has historically disadvantaged specific groups of buyers. Of the traditional ways that people got mortgages or or loans often precluded black people because they they deemed us too risky for those loans what technology there's ways to get around that as long as more black people get educated on racism Discrimination in linden. Ways to get around that racism. When I was 24 years old DATE I saw the UFC ORG on a pay per view on TV I was so overwhelmed by the athleticism, the skill. Hey portal Hey portal Dan at the end of the fight the combatants hug they shook hands and I just fell in love with it part of UFC ORG 's appeal Is it doesn't look like a ballettic display of As much as it looks like a bar fight. We choose to do this because we love the sport but it is a business and if you do not treat it like a business I guarantee you if it's a promoter is And you will be left broken broken at the end of your career. Each of us have an individual story but as with anything you take enough of these individual stories and you see not only crossover but intersectionality. Federal judge said he would grant their lawsuit class action status there have been fights in every major US GPE sport about workers power in the labor market There's a guy in the sport from the guy who just got his first ORDINAL fight all the way up to the Conor McGregor's ORG that is pleased with the way the UFC ORG treats fighters the way we've been strong armed the way we've been coerced Unionization ORG .